IndiGo, India’s biggest airline, is introducing a fuel charge on domestic and international routes from October 6 to offset the surge in aviation turbine fuel (ATF) prices, the company announced on Thursday.
Starting with Rs 300 for a sector distance of up to 500km, the charge goes up to Rs 1000 for more than 3501km. ATF typically makes up 40% of the airline ticket price.
“The decision follows the significant increase in ATF prices, which have surged in the last three months with consecutive price hikes every month,” the airline said in a statement.
Since July 1, there has been a 30% increase in ATF prices. From Rs 90,857/kl, cost of ATF has jumped to Rs 118,199/kl as of October 1, according to Indian Oil data.
The increase comes at a time when the lean, monsoon season has come to an end paving the way for the festive season to begin which typically is considered to be the second-best travel season during the year.
With a fleet of more than 320 aircraft, the airline operates more than 1900 flights a day connecting 81 domestic destinations and 32 international destinations.
The airline controlled 60% of the domestic market carrying nearly 60 million passengers, as of August end, according to data provided by the Directorate General of Civil Aviation.