IndiGo raises fuel charges a day after new CEO announcement

A day after announcing its new chief executive officer, InterGlobe Aviation on Wednesday said it will increase fuel charges across domestic and international routes from April 2.

The move comes against the backdrop of a sharp spike in aviation turbine fuel (ATF) prices, which have risen over 130% on a month-on-month basis, impacting airline operating costs.

Cost pressures take centre stage

On Tuesday, IndiGo announced the appointment of industry veteran Willie Walsh as its new CEO, a news that was taken well by investors. IndiGo stock surged as much as 10% on Wednesday following the announcement.

According to latest exchange filing by the carrier, all new bookings made from April 2 will include revised fuel surcharges, calibrated based on route distance.

Domestic hikes capped after government intervention

For domestic operations, the government has allowed only a 25% staggered pass-through of the fuel price increase, limiting the immediate impact on ticket prices.

Revised fuel charges will range from:

• ₹275 for routes up to 500 km

• ₹950 for routes above 2,000 km

The airline said that without this intervention, fare increases would have been steeper.

International routes see sharper increase

The pressure is more acute on international routes, where fuel prices have more than doubled in the past month.

Depending on distance, fuel surcharges will now go up to:

• ₹2,500 for short-haul routes

• ₹5,000 for Gulf and Southeast Asia

• ₹10,000 for Europe-bound sectors

Partial pass-through, more pressure ahead

IndiGo said it has passed on only a part of the increase to customers.

“Fully offsetting the fuel price increase would require substantial fare revisions,” the airline said.

For now, fuel has once again emerged as the single biggest variable for the aviation sector, with further fare adjustments likely if crude prices remain elevated.