(MENAFN- Market Press Release) October 6, 2023 9:28 am - IndiGo raises ticket prices due to surging fuel costs, implementing a fuel charge that varies based on flight distance. Aviation fuel prices have increased by 6% in the past month, driven by restricted fuel exports and higher overall costs.

IndiGo has announced an upcoming adjustment to its ticket prices for both domestic and international flights, effective October 6. This adjustment is attributed to the escalating prices of Aviation Turbine Fuel (ATF).

In a statement, IndiGo cited a consistent month-over-month increase in aviation fuel costs over the last three months as the primary reason for implementing the fuel charge. The aim is to offset the surge in fuel expenses and maintain affordability for passengers.

The fuel surcharge will be determined by the distance of the flight, with the following pricing structure:

Flights spanning 0–500 kilometers (0-310 miles) will incur a fuel charge of INR 300 ($3.60).
For flights covering 501–1000 kilometers (310–621 miles), there will be a fuel charge of INR 400 ($4.80).
Flights within the range of 1001–1500 kilometers (621–932 miles) will carry a fuel charge of INR 550 ($6.60).
For flights spanning 1501–2500 kilometers (932-1553 miles), the fuel charge will be INR 650 ($7.80).
Flights between 2501–3500 kilometers (1553–2175 miles) will have a fuel charge of INR 800 ($9.60).
Flights covering distances of 3501 kilometers (2175 miles) and above will incur a fuel charge of INR 1000 ($12.00).
Rising Fuel Costs Globally

The cost of aviation fuel has experienced a significant surge in recent months, with a 6% increase reported by the International Air Transport Association (IATA) in the past month alone. As of September 22, the average cost per barrel of fuel reached $131, marking an almost $10 rise from the previous month.

Although fuel prices have been on a steady incline since April of this year, they are currently approximately 3% lower than they were at this time last year. This trend has impacted airlines worldwide, with carriers such as United Airlines, Southwest Airlines, and Alaska Airlines in the United States stating that these price hikes will affect their financial performance.

In Australia, Qantas has disclosed that the escalating fuel expenses may lead to an adjustment in their standard airfares. The airline noted that fuel costs for the first half of 2023 were 30% higher than the previous year, and they anticipate an annual fuel expenditure of AU$2.8 billion ($1.8 billion). Qantas stated,

'The group will continue to absorb these higher costs but will monitor fuel prices in the weeks ahead and, if current levels are sustained, will look to adjust its settings.'"

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