IndiGo raises fuel surcharge as domestic ATF prices climb for third month

IndiGo announced that, effective 0001 hours on Oct 6, all fresh bookings will be subject to higher fuel surcharges, reflecting the latest increase in domestic aviation turbine fuel (ATF) prices. ATF rose by Rs 16 per litre to roughly Rs 137 per litre, marking the third straight monthly rise after increases of Rs 5 and Rs 6.28 in August and September. The new charges will be Rs 1,000 for SAARC routes up to 500 km, Rs 3,000 for longer SAARC trips, Rs 5,500 for Southeast Asia, GCC, the Middle East and North/East Asia, Rs 6,000 for Africa, and Rs 10,000 for Europe.

IndiGo said the increase, while still below the amount needed to fully offset fuel cost inflation, is a measured step to protect margins and limit passenger price shock. The airline had earlier explored fuel-hedging options after a sharp jet-fuel price rise squeezed its margins. Shares of InterGlobe Aviation traded slightly higher on the BSE after the announcement.