IndiGo Adds Fuel Surcharge As Jet Fuel Prices Surge

The shares of IndiGo moved higher on Monday after the company introduced a fuel surcharge on domestic and international flights. InterGlobe Aviation’s (Indigo) stock gained as much as 2.5% to ₹4,265 on the Bombay Stock Exchange (BSE).

The surcharge came into effect at 00:01 hours on 14 March. The airline said the move follows a sharp increase in aviation fuel prices linked to the ongoing geopolitical tensions in the Middle East.

Jet fuel forms one of the biggest expenses for airlines. Any sudden increase in its price can quickly affect operating costs.

Data from the International Air Transport Association (IATA) Jet Fuel Monitor shows that fuel prices in the region have risen by more than 85% in recent months.

The airline said a full pass-through of these costs would require a significant jump in ticket fares. Instead, it has chosen to introduce a smaller surcharge so that the impact on passengers remains limited.

What Is The Fuel Surcharge For Passengers?

Passengers will notice a smaller extra fee based on the route they are flying under the new arrangement.

The airline will levy a fee of ₹425 per sector for domestic flights and routes within the Indian subcontinent. The fee for international routes will be a minimum of ₹900 and a maximum of ₹2,300 depending on the destination.

The airline said the surcharge is meant to absorb part of the cost increase while keeping base ticket fares relatively stable.

How Is IndiGo Adjusting Its Middle East Operations?

IndiGo has also changed its schedule of flights to and from the Middle East as the situation kept changing in that part of the world.

The period from 16 March to 28 March marks a plan by the carrier to run 252 weekly flights connecting India with a few destinations in the region.

The schedule includes the following:

• 126 weekly flights to and from Saudi Arabia

• 28 weekly flights to and from Oman

• 98 weekly flights to and from the United Arab Emirates

However, some routes will remain temporarily suspended.

Flights to Doha, Kuwait City, Bahrain, Dammam, Fujairah, Ras Al Khaimah, and Sharjah will remain suspended until 28 March.

The airline said it is reviewing the situation regularly and adjusting its network depending on operational conditions such as airspace restrictions, airport limitations and insurance costs.

Also Read - FPIs Pull ₹52,704 Crore From Indian Equities So Far In March

What Can People Expect Next?

Airlines are likely to keep monitoring fuel prices and the situation in the Middle East closely. Any further rise in jet fuel prices could force carriers to review ticket pricing or capacity plans.

IndiGo said it is also ready to operate additional flights, if necessary, to assist stranded passengers.

Travellers have been advised to check the latest flight information before departure, as schedules may change depending on developments in the region.

Sources:

Msn

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