Flights Get Costlier as Surging Jet Fuel Prices Push Up Airfares in India

Indian airlines are raising fuel surcharges as higher Aviation Turbine Fuel (ATF) prices, linked to the West Asia crisis, increase operating costs and put pressure on airfares.

IndiGo, the country’s largest airline, announced revised fuel surcharges from October 6. For domestic flights, the surcharge ranges from Rs 375 for journeys up to 500 km to Rs 1,300 for flights exceeding 2,000 km.

For international flights, the revised surcharge ranges from Rs 1,000 to Rs 3,000 for SAARC destinations, while passengers travelling to Southeast Asia, the Gulf, Middle East and North and East Asia will pay Rs 5,500. The surcharge is Rs 6,000 for Africa and Rs 10,000 for Europe.

IndiGo said ATF prices had remained volatile in recent months, with the latest month-on-month increase exceeding 14 per cent. The airline said fuel costs had reached levels among the highest in the last decade.

Other carriers, including Air India, Air India Express and Akasa Air, have also announced fuel surcharges in recent months. SpiceJet has similarly sought to pass on higher fuel costs through additional charges.

ATF accounts for around 40 per cent of an airline’s operating costs, making changes in fuel prices a significant cost factor for carriers. The government has said the share can rise to about 60 per cent during periods of extreme volatility.

Delhi’s domestic ATF price increased to Rs 137 per litre in October, from Rs 121.28 in September, marking a 13.22 per cent rise and the third consecutive monthly increase.