IndiGo, India’s largest domestic airline, said on October 5 that starting on October 6 it would impose a fuel surcharge on both local and foreign flights.
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Fuel Surcharges Would Be Implemented By IndiGo For Both Domestic and International Flights.
The decision was made as a result of the price of ATF rising significantly and steadily over the previous three months, with monthly price increases. The carrier stated in a statement that ATF makes up a sizeable amount of an airline’s operating costs, forcing pricing adjustments to lessen the effects of such cost increases.
Customers who book flights with IndiGo will now pay a fuel premium based on the sector distance, per the new pricing structure.
The Indian government increased jet fuel prices by 5%.
The price of jet fuel (ATF) was increased by the Indian government on October 1 by 5%, making this the fourth month in a row since July. According to a price statement from state-owned gasoline dealers, the price of ATF in the national capital increased by 5.1%, rising to Rs 118,199.17 per kilolitre from its previous price of Rs 112,419.33.
This most recent price hike comes after the biggest increase in history on September 1 of 14.1%, or Rs 13,911.07 per kilolitre, and an earlier 8.5% increase on August 1 of Rs 7,728.38 per kilolitre.
Jet fuel accounts for a significant 40% of an airline’s operating expenses, thus these ongoing fuel price increases will put more financial strain on already struggling carriers.
The price of ATF had already increased by 1.65% on July 1. (or Rs 1,476.79 per kilolitre). Over these four increases, the price of ATF increased by Rs 29,391.08 per kilolitre, setting a record high.
A sizable 830 of India’s 1,048 operating routes are operated by IndiGo. 769 of the 1,048 routes are monopolies, with just one airline serving them. 66% of IndiGo’s total routes and a startling 552 (72%) of these monopoly routes are operated by IndiGo.
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