IndiGo joins Air India in raising fares, introduces fuel charge from March 14

/2 min read

ADVERTISEMENT

Move follows sharp surge in jet fuel prices amid West Asia tensions; surcharge to apply on both domestic and international routes.
IndiGo joins Air India in raising fares, introduces fuel charge from March 14
According to the IATA Jet Fuel Monitor, regional jet fuel prices have risen by more than 85% Credits: Narendra Bisht

IndiGo has joined Air India in increasing airfares, announcing the introduction of a fuel charge on domestic and international routes from March 14, as airlines grapple with a sharp rise in aviation fuel prices triggered by geopolitical tensions in West Asia.

India’s largest airline said the surcharge will apply to all new bookings starting 00:01 hours on March 14, citing a steep increase in jet fuel costs following the ongoing crisis in the Middle East.

Why have airlines started increasing fares?

Airlines say the fare adjustments are a response to a sharp surge in aviation turbine fuel (ATF) prices, which account for a major share of operating costs.

According to the IATA Jet Fuel Monitor, regional jet fuel prices have risen by more than 85%, putting pressure on airline margins and forcing carriers to partially pass on costs to passengers.

The spike in fuel prices follows escalating geopolitical tensions in West Asia, which have disrupted energy markets and increased operating costs for airlines globally.

What fuel charge will IndiGo levy?

IndiGo said the additional charge will vary by route and will be applied per sector.

The airline will charge:

  • ₹425 for domestic flights within India

  • ₹425 for routes within the Indian subcontinent

  • ₹900 for flights to the Middle East

  • ₹1,800 for routes to Southeast Asia and China

  • ₹1,800 for Africa and West Asia

  • ₹2,300 for flights to Europe

The airline said the surcharge represents only a partial pass-through of the increase in fuel costs, noting that fully offsetting the impact would require a much larger fare hike.

How does this compare with Air India’s move?

The announcement comes days after Air India introduced a similar fuel surcharge on tickets, raising fares across several domestic and international routes.

The move by both airlines suggests a broader industry response to rising jet fuel prices and operational costs as airlines attempt to protect margins without sharply increasing ticket prices.

What does this mean for passengers?

With India’s two largest airlines introducing fuel surcharges within a short span, passengers booking flights in the coming weeks are likely to see higher ticket prices across several routes.

IndiGo said it will continue to monitor the situation and make further adjustments to fares if required as fuel prices evolve. 

Explore the world of business like never before with the Fortune India app. From breaking news to in-depth features, experience it all in one place. Download Now