Flying IndiGo? You will have to shell out more from today

Passengers flying IndiGo from Wednesday will have to pay more for flights, as the airline has introduced an up to Rs 400 fuel surcharge on ticket to offset the impact of rising fuel prices.

“A sum of Rs 200 will be added on routes less than 1000 km distance, and Rs 400 on routes longer than 1000 km distance. The surcharge will be applicable on all domestic trips i.e. within India, and will come into effect at midnight on May 29, 2018,” said a release from the airline.

IndiGo, India’s largest carrier in terms of market share, said that aircraft fuel expenses represent the single largest item of IndiGo’s total expenses, accounting for around 40 percent of the airline's cost of operation. Furthermore, the depreciating Indian Rupee is an additional cost burden on the Indian carriers. Given this scenario for a low cost airline, levying a surcharge has become inevitable.

“With ATF prices in India having risen around 25% in the current month compared to the same period last year, and at the highest in last three years, the airline is compelled to pass some of the increased cost burden to customers as a fuel surcharge. In the context of the past decade, where airfares in India have reduced by nearly 50 per cent in real terms (i.e. adjusted for inflation), we are confident that this marginal increase in the form of fuel surcharge will not have any significant adverse impact on demand,” Sanjay Kumar, Chief Commercial Officer, IndiGo was quoted in the release.

The airline said that it will review the surcharge in the light of oil prices going forward, and endeavours to be in a position to withdraw it once oil prices have moderated.

“We are hopeful that the 1.5 lakh plus passengers flying with IndiGo each day will continue giving us support. We assure our customers that this move of reintroduction of fuel surcharges will not much impact the low fares that are being charged, and will not change IndiGo’s positioning as a low cost carrier that is also synonymous with being on-time and providing courteous and hassle free service,” Kumar was further quoted.