IndiGo Removes Fuel Surcharge as ATF Prices Decline

4 Jan 2024 , 03:22 PM

IndiGo removes fuel surcharge due to a gradual decline in ATF prices over the last three months. The airline had imposed a fuel surcharge of up to Rs 1,000 on October 5, prompted by a surge in ATF prices.

Recent reduction in ATF prices leads to the withdrawal of the fuel charge, effective January 4. ATF prices decreased from Rs 1.182 lakh per kilolitre on October 1 to Rs 1.012 lakh per kilolitre on January 1.

IndiGo states they will continue to adjust fares based on dynamic ATF prices and market conditions.

The airline waives the fuel surcharge for tickets booked from January 4 onwards. Tickets booked before January 4 for travel after that date will still incur the surcharge, with no refunds.

ATF costs represent about 45% of overall revenue for Indian carriers. IndiGo’s previous fuel charge structure had graded amounts based on flight distance.

State-owned oil companies revise ATF prices monthly based on the average international price in the previous month.

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