IndiGo to hike fuel surcharge for all flights from Oct 6

IndiGo, India's largest airline, has announced a hike in fuel surcharge for all domestic and international flights starting October 6, in response to the increasing cost of jet fuel. The new surcharge will come into effect on the stipulated date and will cause airfares to rise. The extent of the increase varies depending on the distance of the flight, ranging from Rs 100 to Rs 350 for domestic journeys.

The carrier has also implemented the surcharge increase for international flights. This is the second hike since the surcharge was first introduced in March.

The fuel surcharge will be Rs 375 for routes covering up to 500 kilometres, Rs 600 for flights with distances between 501 to 1,000 kilometres, Rs 900 for routes spanning 1,001 to 1,500 kilometres, and Rs 1,150 for flights extending between 1,501 to 2,000 kilometres. For journeys beyond 2,000 kilometres, the surcharge will be Rs 1,300.

SAARC region flights will incur a surcharge between Rs 1,000 to Rs 3,000, Africa flights will see a surcharge of Rs 6,000, and Europe services will have a surcharge of Rs 10,000. International destinations including Southeast Asia, GCC, the Middle East, and North and East Asia will have a surcharge of Rs 5,500.

IndiGo attributes the surcharge increase to the volatile prices of Aviation Turbine Fuel (ATF) in recent months, particularly due to the geopolitical tensions in the Middle East. The airline notes that the continuous rise in fuel prices, with the latest month-on-month increase surpassing 14 percent, has driven ATF costs to among the highest levels not seen in over a decade.

As ATF constitutes a significant portion of the airline's operating expenses, this surge is expected to influence the airline's cost structure and network economics.