The Indian airline IndiGo announced on Monday its intention to increase its fuel surcharges on both domestic and international routes, starting from October 6. This decision is linked to the rise in global prices for aviation turbine fuel.
On domestic routes, fuel surcharges will increase in the range of 375 rupees to 1300 rupees, compared to the previous level of 275–950 rupees. For international flights, the cost will rise to 1000–10,000 rupees, whereas previously it was from 900 to 10,000 rupees, depending on the distance covered.
IndiGo's last tariff increase was implemented in April. This step is being taken against the backdrop of instability in aviation turbine fuel prices caused by the war between the USA, Israel, and Iran. The airline reported that global prices rose by 14 percent in October.
Fuel accounts for up to 40 percent of airlines' operating costs, and sharp price fluctuations can negatively affect their profitability. Previously, IndiGo recorded a loss of 3.82 billion rupees in the first quarter. In May, the company stated that it was considering the possibility of hedging fuel costs to protect its margin.