IndiGo removes fuel charge from today citing easing jet fuel price

Airline IndiGo on Thursday announced the removal of a fuel charge applicable to its domestic and international routes, citing the recent reduction in aviation turbine fuel rates. The stock of InterGlobe Aviation, the parent company of IndiGo, rose by as much as Rs 12.8, or 0.4 per cent, to Rs 3,006 apiece on BSE after the announcement before turning flat.

The removal took effect from the same day, the airline said in a statement.

"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 said.

Jet fuel accounts for a substantial portion of an airline's operating expenses.

Analysts say the announcement might lead to reduced fares by the airline.   

Aviation turbine fuel prices have decreased sharply since October last year, when IndiGo introduced the fuel charge following a surge in jet fuel rates. 

Here's a summary of the trend in the ATF price: 

Here is the pricing structure of the fuel charge, per sector, as per the airline's earlier communication:  

IndiGo also said it remains committed to its "promise of providing of affordable, on-time, courteous, and hassle-free travel for our customers".

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