IndiGo Chief Executive Officer Willie Walsh on Thursday stated that the airline has “no choice left but to look to increase fares” as it faces a significant rise in its fuel expenditure.
With Aviation Turbine Fuel (ATF) accounting for roughly 40 per cent of an airline’s operational costs, sustained price hikes have severely impacted operating margins across the aviation sector.
India’s largest carrier has already introduced revised fuel charges across both domestic and international sectors. The move followed a month-on-month increase in ATF prices exceeding 14 per cent, driving jet fuel costs to near a decade-high level.
Under the revised pricing structure, domestic fuel surcharges now range from Rs 375 to Rs 1,300 depending on flight distance, marking an increase of Rs 100 to Rs 350 per sector.
For international destinations, surcharges vary from Rs 1,000 to Rs 10,000, with long-haul European routes facing the highest bracket of Rs 1,0000, while flights to Southeast Asia and the Gulf region carry a Rs 5,500 surcharge.
The airline noted that ongoing geopolitical friction in West Asia, coupled with currency volatility, continues to pressure fuel economics, forcing periodic revisions to maintain operational sustainability.
