IndiGo Increases Airfare On Domestic Routes To Counter Rising Oil Prices!

In a bid to cater to rising oil prices, IndiGo will increase the fuel surcharge on flight tickets for domestic routes. This will increase air ticket prices and it is speculated that other airlines may follow IndiGo’s footsteps.

The cost of Aviation Turbine Fuel (ATF) has increased by 30% in the past 1 year and it was just a matter of time, that airlines passed on this burden to passengers. IndiGo is the first domestic airline to do so.

Here are the details of the price hike –

• IndiGo flight tickets will carry a fuel surcharge of Rs 200 for a short flight, covering a distance of 1000 Km and below.
• Flights on longer routes, which cover more than 1000 Km, will carry a fuel surcharge of Rs 400 per passenger.

To make things clearer, you will be charged Rs 400 for fuel on a return flight ticket from Delhi-Chandigarh and Rs 800 on a return flight ticket from Delhi-Mumbai.

In addition to fuel charges, a passenger pays a CUTE(Common Use Terminal Equipment) charge of Rs 50, Rs 200 for the Regional Connectivity Scheme(RCS) provision and Rs 153 for Passenger Service Fee along with airport development fee and taxes on a flight ticket.

All this, along with an increase in fuel charge, will surely affect passengers and their holiday plans.

According to Mr. Sanjay Kumar, IndiGo’s Chief Commercial Officer, ATF prices in India have increased by 25 % in the last month, which is the highest in the last 3 years and the airline has no other option but to pass on some of its increased cost burden to the passengers. He also said that the airline is confident that this marginal increase in ticket prices will not affect the demand.

ATF accounts for 45% of the total operating cost of an airline. With Indigo being the first airline to make this move, others may follow them and aviation experts are saying that airlines in India may increase their ticket prices by 15%.

With people gearing up for summer vacations, the timing of this decision could not have been worse. People who were looking forward to booking last minute tickets to holiday destinations within India will be very disappointed.  However, this decision will not affect those who have booked their flight tickets well in advance.