IndiGo CEO Willie Walsh has said the airline has “no choice left but to look to increase fares” as it faces a “very significant” rise in its fuel bill, PTI reported on Thursday.
India’s largest airline has already revised fuel charges on domestic and international routes amid a sustained increase in jet fuel prices. The latest revision, effective October 6, came after IndiGo said the month-on-month increase in ATF prices had exceeded 14%, taking costs to among their highest levels in the past decade, HT reported earlier . Under the revised structure, IndiGo’s fuel charges on domestic flights range from ₹ 375 to ₹ 1,300, depending on the distance travelled. The charges were raised by ₹ 100 to ₹ 350 per sector. For international flights, the revised charges vary by destination, ranging from ₹ 1,000 to ₹ 10,000. Flights to Europe attract a fuel charge of ₹ 10,000, while flights to Southeast Asia, the Gulf region and parts of East Asia attract a charge of ₹ 5,500.
Aviation turbine fuel is one of the biggest expenses for airlines, accounting for a substantial share of their operating costs. Sharp increases in fuel prices can squeeze profit margins, particularly when airlines are unable to pass on the entire increase to passengers. Fuel prices have remained volatile amid geopolitical tensions in West Asia. The impact on airlines is compounded by fluctuations in international oil prices and currency movements.
The airline has said it will continue to monitor fuel prices and make adjustments as required.
IndiGo’s latest move follows an earlier revision of fuel charges in April.
