IndiGo Removes Surcharge After Fall In Jet Fuel Prices
The aviation turbine fuel prices were cut on Jan. 1 by nearly 4% to Rs 1.02 lakh per kilolitre, following a reduction of 6% in November and over 4% in December.
IndiGo removed the fuel charge on both domestic and international routes on Thursday after three months due to a fall in the price of aviation turbine fuel.
The waiver of the surcharge will lead to reduced airfares on a majority of routes, as IndiGo carries six out of every 10 flyers in India.
"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," the airline said in a release.
The aviation turbine fuel prices were cut on Jan. 1 by nearly 4% to Rs 1.02 lakh per kilolitre, following a reduction of 6% in November and over 4% in December.
Before the reduction in the last three months, the higher crude oil prices led to four consecutive months of hikes in the ATF price. This led to the country's dominant airline introducing a fuel surcharge on all routes. Fuel prices comprise nearly 40–45% of airlines' operational expenses.
Shares of InterGlobe Aviation Ltd. were trading 0.8% lower at Rs 2,966.05 apiece on the NSE compared to a 0.6% advance in the benchmark Nifty 50 at 11:39 a.m.
