Just a handful of days after 2024 began, IndiGo has given a new year gift to flyers.?
IndiGo on Thursday removed the fuel charges?after a recent reduction in (Aviation Turbine Fuel) ATF prices. The fuel charge was introduced in October 2023, following a surge in ATF prices. This has resulted in flight costs rising since then.
"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 remains committed to its promise of providing of affordable, on-time, courteous, and hassle-free travel for our customers," said the airline in a press release.
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IndiGo had in October introduced fuel charges starting from Rs 300 up to Rs 1,000 due to rising ATF prices on its domestic and international routes.?"The decision follows the significant increase in ATF prices, which have surged in the last three months with consecutive price hikes every month. ATF accounts for a substantial portion of an airline's operating expenses, necessitating fare adjustment to address such a cost surge," IndiGo had said in its statement in October.
Also Read:?IndiGo?Shares Bleed As Co-founder's Family Decides To Sell Rs 7500 Crpre Stake.
The central government on January 1, for the third straight time, cut ATF prices. This time around, it was cut around 4 per cent to Rs 101,993.17 per kl in New Delhi, as per price notifications of state-owned fuel retailers.
ATF prices were slashed by 6 per cent and 4.6 per cent in November and December respectively.?
The cut in ATF prices is a positive for airlines as jet fuel makes up for around 40 per cent of their operating costs. As per ET,?Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the first of every month.
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