IndiGo Slashes Flight Costs: Fuel Surcharge Removal Brings Relief to Travelers

IndiGo, the prominent low-cost carrier, has declared a significant cost-cutting measure by eliminating fuel surcharges on both domestic and international flights with immediate effect. This decision, effective from January 04, 2024, comes as a response to the reduction in Aviation Turbine Fuel (ATF) prices after a series of consecutive hikes.

The removal of the fuel surcharge reverses a move made by the airline in October 2023, where it introduced the charge due to escalating ATF prices. In a statement, IndiGo expressed its satisfaction in announcing the withdrawal of the fuel charge, attributing it to the recent reduction in ATF prices.

The ATF prices, which experienced a surge in October, reaching Rs 1,18,199.17 per kilolitre, observed a noteworthy decline of nearly 6% in November 2023. This trend continued into the new year, with jet fuel prices marking a third consecutive monthly decrease, reaching Rs 1,01,993.17 per kilolitre in Delhi.

Initially, IndiGo had communicated that the fuel charges would range from Rs 300 to Rs 1,000 based on the distance traveled. Given that ATF can constitute a significant portion of an airline's costs, the elimination of the fuel surcharge is expected to bring relief to travelers, particularly those flying with low-cost airlines.

"As ATF prices are dynamic, we will continue to adjust our fares and components thereof to respond to any change in prices or market conditions. IndiGo remains committed to its promise of providing affordable, on-time, courteous, and hassle-free travel for our customers," assured IndiGo.

In the quarter ending September 30, 2023, IndiGo reported a consolidated net profit of Rs 188.93 crore, accompanied by a notable 19.57% increase in revenue from operations, reaching Rs 14,944 crore compared to the same period the previous year.

As this cost-saving move aims to enhance customer satisfaction and accessibility, IndiGo's parent company, InterGlobe Aviation, saw a 0.15% increase in trading, reaching Rs 2997.55 per share on Thursday around 2 pm.