IndiGo leads the way as fuel surcharges lifted, signalling potential drop in airfares

In a significant development for air travelers, IndiGo, the country’s largest airline, has taken the bold step of eliminating fuel surcharges, paving the way for potential reductions in domestic airfares.

This decision comes in response to the recent easing of fuel prices, marking a shift from the company’s previous strategy implemented in October.

The introduction of fuel surcharges by IndiGo last October was prompted by substantial losses incurred as a result of the surging prices of aviation turbine fuel (ATF), commonly referred to as Jet fuel.

ATF prices, constituting nearly 40% of an airline’s total operating cost, remained high throughout 2023, tracking the upward trajectory of crude oil prices.

The airline found itself compelled to pass on the burden of rising ATF costs to consumers in the form of a surcharge.

The price of ATF began its descent in November, following a steady climb from July 2023. In the latest development, ATF prices in Delhi saw a notable reduction from 109,966.39 rupees per kiloliter (Rs 109.97 per liter) to 101,993.17 rupees per kiloliter.

IndiGo has emphasized that the elimination of fuel surcharges aligns with its commitment to offering affordable airfares.

However, the airline acknowledges the possibility of reinstating the surcharge should ATF prices experience a subsequent upswing.

The move by IndiGo is anticipated to influence the overall landscape of domestic airfares, potentially making air travel more accessible for a broader spectrum of passengers.