IndiGo shares decline 5% as airline announces revised fuel charges of up to ₹10,000; airfares to rise

The announcement from the country's largest airline comes on a day when the aviation turbine fuel (ATF) prices were revised, and the government decided to only partially hike the price by 25% for the domestic flights.

From March 14 onwards, the airline has been levying fuel charges ranging from ₹425 to ₹2,300 on domestic and international flight tickets as the fuel prices jumped in the wake of the West Asia conflict.

"Although fully offsetting the fuel price increase would require substantial fare revisions, IndiGo has passed on a relatively smaller amount to customers, keeping in mind the consequential burden on them," IndiGo said on Wednesday, and regretted the inconvenience to passengers resulting from the fuel charges.

Fuel charge details

For domestic flights, the revised fuel charges will be ₹275 to ₹950, and in the case of international flights, the fuel charges will vary from ₹900 to ₹10,000. The charges, which will depend on the distance, will be applicable from 0001 hours on April 2.

The fuel charge will be ₹275 for domestic flights on routes that are 0-500 km long and ₹400 for flights that fly 501-1,000 kms.

The amount will be ₹600 for 1,001-1,500 kms, ₹800 for 1,501-2,000 kms, and ₹950 for distances above 2,000 kms.

Currently, the airline levies a flat fuel charge on domestic flight tickets.

The airline said it was thankful to the government for the timely intervention, without which April 2026 fuel cost increases would have severely impacted the affordability of domestic air travel.

"For international operations, ATF prices have more than doubled in the last month, consequently driving a significant impact on the airline’s operating costs on these routes," the airline said in a statement.

In the Indian subcontinent, the fuel charges will be ₹900 for up to 500 km and ₹2,500 for above 500 km.

For GCC and Middle East services, the amount will be ₹3,000 for up to 2,000 km and ₹5,000 for above 2,000 km.

IndiGo said that for Southeast Asia and China, the fuel charges will be ₹3,500 for up to 2,000 km and ₹5,000 for above 2,000 km.

For Africa flights, the fuel charge will be ₹5,000, and in the case of Greece and Turkey, it will be ₹7,500.

The fuel charge will be ₹10,000 for UK and European flights.

IndiGo said it would continue to monitor the situation and make relevant adjustments as and when appropriate.

Earlier in the day, a government official said the decision on a limited hike in jet fuel price ensures that carriers' domestic operational costs remain manageable and will not lead to additional fuel surcharges.

ATF accounts for around 40% of an airline's operational costs.

IndiGo share price

Shares of the company ended over 6% higher at ₹4,183 apiece on the NSE on Wednesday.