IndiGo scraps fuel charges on bookings after recent reduction in ATF prices

IndiGo scraps fule charges: Interglobe Aviation Limited or IndiGo, India's largest airline by fleet, has decided to eliminate the fuel charge it introduced earlier. This comes after the recent reduction in Aviation Turbine Fuel (ATF) prices. Effective January 4, 2024, passengers will no longer bear the additional fuel charge, marking a positive development for air travelers.

IndiGo initially introduced the fuel charge on October 5, 2023, as a response to the successive surge in ATF prices over the preceding months. ATF constitutes a significant portion of an airline's operational expenses, and the decision to implement a fuel charge was aimed at offsetting the impact of rising fuel costs.

Under the introduced pricing structure, the fuel charge varied based on the sector distance, with different rates for different ranges:

• 0-500km: Rs 300
• 501-1,000 km: Rs 400
• 1,001-1,500 km: Rs 550
• 1,501- 2,500 km: Rs 650
• 2,501 – 3,500 km: Rs 800
• 3,501 km and above: Rs 1,000

The removal of the fuel charge comes as a relief for passengers, aligning with the recent reduction in ATF prices. The decision is expected to positively impact the cost of air travel, providing travelers with a more favourable fare structure.

IndiGo shares opened today, January 4, 2024, at Rs 2,990.45 and rose to an intraday high of Rs 3,005.75 on the NSE.