Rising Fuel Price Forces IndiGo to Hike Flight Rates by Up to Rs 400 | CORPORATE ETHOS

Rising Fuel Price Forces IndiGo to Hike Flight Rates by Up to Rs 400

By: | May 30, 2018
indigo

May 30: IndiGo airline passengers will have to bear the brunt of the rising fuel prices, as the company has decided to hike ticket prices owing to increasing fuel rates. In order to offset the rising oil prices, the carrier will be levying fuel surcharge that would go high by up to Rs 400.

IndiGo will be levying the fuel surcharge across all its tickets. For a journey less than 1000 kms, the carrier will levy a surcharge of Rs 200, while journeys above 1000 km will be imposed with a fuel surcharge of Rs 400.

With the move, IndiGo has become the first carrier from the country to pass on the burden of fuel price hike to the passengers. The fuel surcharge will be implemented over the rates with effect from May 30, according to the release issued by the carrier on Tuesday.

IndiGo also put down the concerns related to increasing the travel rate and its effect on air-traffic demand.  According to reports quoting a company spokesperson, a marginal increase in airfares in the form of fuel surcharge will not have any significant adverse impact on the air-traffic demand.

IndiGo said that the fuel expense along with the depreciating value of India rupee that adds cost burden on the carrier had made fuel surcharges inevitable. Aircraft fuel expenses alone take up around 40 per cent of the airlines’ overall operational costs. Aviation Turbine Fuel prices have gone up by around 25% in comparison to the prices during the same period the previous year.

IndiGo expressed hope that the passengers will continue giving the support to the company despite the rate variation. It feels that the 1.5 lakh plus passengers flying with IndiGo each day will continue to support the airline. Airfares in India have been reduced by nearly 50 per cent in real terms, i.e. adjusted for inflation, it added.