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IndiGo revises surcharge from April 2, airfares set to climb

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Following the spike in Aviation Turbine Fuel (ATF), prices have begun feeding into airfares, with IndiGo announcing revised fuel charges across domestic and international routes for all bookings made from 0001 hrs on April 2. The move comes after global jet fuel rates surged over 130% month-on-month, tightening cost pressures across the aviation sector and forcing airlines to recalibrate pricing.Citing data from the International Air Transport Association Jet Fuel Monitor, the airline flagged an unprecedented rise in fuel costs, particularly impacting international operations where ATF prices have more than doubled within weeks. Fuel accounts for nearly 35-40% of an airline’s operating expenses, making it the single biggest cost driver.In a calibrated response, the Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation have stepped in to soften the blow for domestic flyers, allowing only a staggered 25% pass-through of the fuel price increase to airlines. This intervention has prevented a sharper surge in ticket prices at the start of the summer travel season.IndiGo said it has ‘re-calibrated’ its domestic fuel surcharge based on distance slabs, aiming to balance cost recovery with affordability.Passengers on short-haul routes up to 500 km will now pay an additional Rs 275 per sector, while those travelling beyond 2,000 km will see a surcharge of Rs 950. Intermediate routes have been priced at Rs 400, Rs 600, and Rs 800 depending on distance bands.However, the pressure is far more pronounced on international routes where no such cushioning exists. The airline has imposed steeper fuel charges, ranging from Rs 900 for short-haul subcontinent sectors to as high as Rs 10,000 per sector on long-haul routes to the UK and Europe. Flights to the Gulf and Middle East will attract charges between Rs 3,000 and Rs 5,000, while Southeast Asia and China routes are similarly priced. Africa-bound routes will carry a flat Rs 5,000 surcharge.Industry insiders say this is only a partial pass-through of the actual cost escalation. Fully offsetting the surge in ATF would have required significantly higher fare hikes, raising concerns over demand elasticity, particularly in the price-sensitive Indian market.IndiGo acknowledged the strain on passengers, but maintained that the revision was unavoidable. “The measure has been driven by a sudden and substantial change in the operating environment,” the airline said, adding that it has deliberately absorbed a portion of the increase to limit the burden on customers.

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