The biggest airline in India, IndiGo, has removed the fuel fees it had been imposing on both domestic and international routes due to a decline in the price of jet fuel (ATF) over the previous several months.
IndiGo published the fuel price in early October. It was based on distance slabs and ranged from Rs 300 to Rs 1,000 per sector. “With effect from January 4, 2024, IndiGo, the top airline in India, is happy to announce the elimination of fuel fees on both domestic and international routes. In October 2023, the fuel fee was implemented in response to a sharp increase in the cost of aviation turbine fuel (ATF).
IndiGo is dropping the fee in light of the recent drop in ATF prices, the company said in a statement. The airline also stated that it will keep modifying fares “to respond to any change in prices or market conditions” because of the volatile nature of ATF costs.
The fuel fee was implemented at the beginning of the busiest travel season for festivals, after four months of successive increases in the price of jet fuel, which reached their greatest point by early October of 2023. Since then, ATF prices have dropped three times in a row. Since October, jet fuel prices have decreased by over 14%.
The decision was made in response to the sharp rise in the price of aviation turbine fuel (ATF), which has increased monthly for the past three months. ATF makes up a sizable amount of an airline’s operating costs; hence, pricing adjustments are required to offset this cost increase. The airline said in a statement that customers booking IndiGo flights will be subject to a fuel fee, per sector, based on the sector distance.
IndiGo had previously announced the fee in October. ATF is a significant price for airlines; for Indian carriers, it makes up more than 40% of their total operating costs. The prices of ATFs are deregulated and based on international rates in India. Jet fuel prices have decreased on the international market in tandem with the drop in cude oil prices, which had reached a high of $97 a barrel in September.
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