IndiGo hikes fuel surcharge on domestic, international flights amid rising ATF prices

IndiGo on Monday announced an increase in fuel charges on its domestic and international flights, citing a sharp rise in aviation turbine fuel (ATF) prices.

IndiGo said the continuous rise in fuel prices has taken ATF costs to levels that are amongst the highest in the last decade.

"Given that Aviation Turbine Fuel (ATF) makes up a significant share of airlines' operating costs, this rise is expected to impact airlines' cost structures and network economics, including those of IndiGo," the statement said.

The airline said fuel charges on domestic routes have been revised upwards by up to ₹1300, while charges on international routes have been increased by up to ₹10,000, depending on the route and distance.

The charge for international flights will be ₹1,000 for flights up to 500 km and ₹3,000 for flights of 501 km and above in the SAARC region.

The charge will be ₹5,500 for Southeast Asia, GCC, Middle East routes, and North and East Asia.

The revised charges will be effective from October 6 and will push airfares higher.

The move comes after ATF prices were raised by a steep ₹16 per litre from Thursday amid firming international oil prices.

According to state-owned oil companies, ATF prices for domestic airlines were increased to ₹137 per litre from ₹121.

The latest increase follows a ₹6.28 per litre, or 5.46%, hike in ATF prices in September and a ₹5 per litre increase in August.

IndiGo said the increase in fuel charges was relatively modest compared with the larger increase that would have been required to fully offset the rise in fuel costs.

"IndiGo regrets the additional burden these revised fuel charges may place on its customers," the airline said, adding that it would continue to monitor the situation and make adjustments as appropriate.