IndiGo Announces Reduction in Airfares Up to Rs 1,000 as Fuel Charge Withdrawn

IndiGo, the country’s largest airline, has decided to withdraw the fuel charge imposed on passengers, resulting in a potential reduction of airfares by up to Rs 1,000, particularly on long routes. The airline introduced the fuel charge on both domestic and international tickets from October 6, 2023, in response to the escalating prices of jet fuel. The quantum of the fuel charge ranged from Rs 300 to Rs 1,000 based on the flight distance.

In a recent statement, IndiGo cited the recent decline in Aviation Turbine Fuel (ATF) prices as the reason for withdrawing the fuel charge, effective from January 4. As ATF prices remain dynamic, the airline emphasized its commitment to adjusting fares and components accordingly in response to any changes in prices or market conditions.

Fuel costs constitute a significant portion of operational expenses for carriers, and the move to withdraw the fuel charge is seen as a response to the reduction in ATF prices. The removal of the fuel charge is expected to result in a tangible decrease in overall ticket prices for IndiGo passengers, ranging from at least Rs 300 to up to Rs 1,000.

This development comes amid concerns about rising airfares despite the ongoing recovery in domestic air traffic. The civil aviation ministry had previously advised airlines to exercise self-regulation and prioritize passengers’ interests while determining fares.

IndiGo had introduced the fuel charge on October 6, 2023, citing a substantial increase in ATF prices as the rationale. The decision was made to address the surge in operating costs attributed to higher ATF prices.

IndiGo, holding the largest market share in the country, carried 78.76 lakh passengers in November 2023, representing a domestic market share of 61.8 percent. Civil aviation minister Jyotiraditya Scindia clarified that airfares are neither established nor regulated by the government and are influenced by market dynamics, demand, seasonality, and other factors. The ministry had engaged in consultations with airlines, urging them to self-regulate and consider passengers’ interests when determining airfares. Airlines committed to ensuring that airfares remain stable, especially during events such as natural disasters and calamities.