NEW DELHI: IndiGo on Thursday said it has stopped collecting a fuel charge on airline tickets from passengers on domestic and international rules following the reduction in the price of aviation fuel.
The airline introduced the charge in October this year after a surge in aviation turbine fuel (ATF) prices.
“With recent reduction in ATF prices, IndiGo is withdrawing the charge,” the airline spokesperson said in a statement.
Aviation turbine fuel prices make up for about 40% of an airline’s operating cost.
“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,” IndiGo said in a statement. The decision to remove the fuel charge will be effective January 4, Thursday.
The fuel charge introduced in October ranged between ₹300 and ₹3,500, depending on the distance to the destination.
IndiGo’s move comes after state-owned fuel retailers.on Monday notified a reduction in the price of the jet fuel in Delhi by ₹4,162.5 or 3.9% per kl to ₹101,993.17, the third straight monthly reduction in ATF prices.
ATF price was cut by almost 6% ( ₹6,854.25 per kl) in November and by ₹5,189.25, or 4.6%, in December.
Together, the three rounds of reduction have wiped away almost 45% of the ₹29,391.08 per kl increase in rates effected in four monthly tranches starting July 1.
