Budget airline IndiGo on Thursday said it has removed fuel charge on tickets, nearly three months after introducing the levy in the wake of a surge in jet fuel prices. The fuel charge, which was introduced by IndiGo in early October 2023, has been removed with effect from Thursday, January 4.
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The airline said the fuel charge has been withdrawn due to the recent reduction in ATF (Aviation Turbine Fuel) prices. “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 said in a statement.
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The removal of fuel charges will lead to a fall in ticket prices. In October, IndiGo levied a fuel charge of Rs 300 on a sector distance of up to 500 km, Rs 400 on 501-1,000 km, Rs 550 on 1001-1500 km, Rs 650 on 1,501-2,500 km, Rs 800 on 2,501-3,500 km, and Rs 1,000 on 3,500 km and above.
Jet fuel or aviation turbine fuel (ATF) costs account for a significant chunk of a carrier’s operational costs. The fuel charge was applicable on the airline’s domestic and international routes.
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IndiGo said the fuel charge had been introduced on October 5, 2023, following a surge in ATF prices.
“With the recent reduction in ATF prices, IndiGo is withdrawing the charge,” the airline stated.
