NEW DELHI: As the annual lean travel season (January-March) kicks in, IndiGo has from Thursday withdrawn the fuel surcharge it has introduced last October due to surging aviation turbine fuel (ATF) prices. The airline said it is doing so due to the recent cut in ATF prices. This charge was being levied from October 6, 2023, in the range of Rs 300 to Rs 1,000 (taxes extra) depending on distance.
“IndiGo..announce(s) the removal of fuel charge applicable on its on domestic and international routes, effective January 4, 2024. The fuel charge had been introduced in October 2023, following a surge in ATF prices. With recent reduction in ATF prices, IndiGo is withdrawing the charge, IndiGo said in a statement, adding, “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The surcharge, now withdrawn, was: Rs 300 (taxes extra) for upto 500-km-long sectors; Rs 400 for 501-1,000 km; Rs 550 for 1,001-1,500 km; Rs 650 for 1,501-2,501 km; Rs 800 for 2,501-3,500 km and Rs 1,000 for 3,501 km and beyond.
When it was introduced, other airlines were expected to follow suit. But a weak travel sentiment last October — essentially due to airlines steeply hiking airfares expecting bumper festive season flyers – meant that did not happen. Over 80% domestic flying in India happens on low-cost airlines with Air India and Vistara being the only two full service carriers.
Since last October airlines have been frequently reversing the time-honoured policy of “book early pay less”. The consumer hit back last festive season with high airfares sending people to trains. It was not common to see people booking train tickets for travel festive season due to exorbitant airfares last October. While many went on trains, by the time of return in November airlines realised their lapse of judgment and lowered airfares. So many opted to cancel their return from time to and instead flew back thanks to lower airfares in November, say industry insiders.
“IndiGo..announce(s) the removal of fuel charge applicable on its on domestic and international routes, effective January 4, 2024. The fuel charge had been introduced in October 2023, following a surge in ATF prices. With recent reduction in ATF prices, IndiGo is withdrawing the charge, IndiGo said in a statement, adding, “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 surcharge, now withdrawn, was: Rs 300 (taxes extra) for upto 500-km-long sectors; Rs 400 for 501-1,000 km; Rs 550 for 1,001-1,500 km; Rs 650 for 1,501-2,501 km; Rs 800 for 2,501-3,500 km and Rs 1,000 for 3,501 km and beyond.
When it was introduced, other airlines were expected to follow suit. But a weak travel sentiment last October — essentially due to airlines steeply hiking airfares expecting bumper festive season flyers – meant that did not happen. Over 80% domestic flying in India happens on low-cost airlines with Air India and Vistara being the only two full service carriers.
Since last October airlines have been frequently reversing the time-honoured policy of “book early pay less”. The consumer hit back last festive season with high airfares sending people to trains. It was not common to see people booking train tickets for travel festive season due to exorbitant airfares last October. While many went on trains, by the time of return in November airlines realised their lapse of judgment and lowered airfares. So many opted to cancel their return from time to and instead flew back thanks to lower airfares in November, say industry insiders.
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