IndiGo on Thursday announced that it has removed fuel charges from all domestic and international flights with immediate effect.
The budget carrier introduced fuel charges in October 2023, following a surge in Aviation Turbine Fuel (ATF) prices.
However, with the government slashing ATF prices for third time in a row, IndiGo said it has removed the ‘fuel charge’ with effect from 4 January 2024.
“As ATF prices are dynamic, we will continue to adjust our fares and components thereof, to respond to any change in prices or market conditions,” IndiGo said in an official statement.
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InterGlobe Aviation, the parent of IndiGo, was up by 0.057% at ₹2,992.15 at 11:20 am on Thursday.
On New Year’s Day, the Jet fuel or ATF price was cut for the third consecutive month. The government slashed ATF prices by ₹4,162.5, or 3.9% on 1 January 2024 in Delhi to ₹101,993.17 per kl, according to price notifications of state-owned fuel retailers.
Previously, ATF price was cut by almost 6% ( ₹6,854.25 per kl) in November and by ₹5,189.25, or 4.6%, in December.
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The three rounds of reduction have wiped away almost 45% of the ₹29,391.08 per kl increase in rates effected in four monthly tranches starting July 1.
The reduction in the price of jet fuel, which makes up for 40% of an airline’s operating cost, will ease the burden on already financially strained airlines.
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IndiGo’s net profit stood at around ₹189 crore in the second quarter of the current fiscal year. The airline’s total income jumped 20.6% to ₹15,502.9 crore.
The airline had told the exchanges that in the September quarter, fuel costs declined 6.4% to ₹5,856 crore compared to the year-ago period.
Why domestic tailed international in 2023 air traffic growth
IndiGo, which had a fleet of 334 aircraft at the end of September, said it grounded more aircraft due to the Pratt & Whitney engine issues.
The airline company has grounded around 40 planes so far.
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Published: 04 Jan 2024, 11:17 AM IST