Flyers alert! IndiGo to hike ticket prices, get ready to pay Rs 400 more

Oil has been on the boil for quite some time now and Indians have been feeling the heat in terms of rising petrol and diesel prices, which have hit all-time highs recently. Now, the aviation is set to be impacted too. The first to move out of the blocks and signal a hike in tickets is affordable carrier IndiGo. In a statement, it revealed that it will be imposing a fuel surcharge on ticket prices to counter the rising trend in oil prices, which had led to a sharp uptick in the cost of Aviation Turbine Fuel (ATF). IndiGo is the country’s largest low cost carrier and this move is likely to be followed by the other airlines, sooner rather than later.

IndiGo has revealed that it will reintroduce fuel surcharges effective May 30, 2018, which is tomorrow.  What that is leading up to is a hike in ticket prices and considering that this is the start of the summer vacation period, whole families will be impacted by the sudden announcement. Justifying its decision to impose the fuel surcharge, Indigo said that aircraft fuel expenses represent the single largest item in the carrier's total expenses and accounts for as much as 40 percent of the cost of operation.  

Not just oil, IndiGo also cited the weak Indian rupee vs US dollar for its move. It said, "The depreciating Indian Rupee is an additional cost burden on the Indian carriers.  Given this scenario for a low cost airline, levying a surcharge has become inevitable." 

However, even as oil has retreated from the highs of $80 per barrel it hit recently and the rupee too strengthened over the last few days, yet that has not prevented it from announcing the hike.

And by how much will the common flyer's ticket become pricier? IndiGo statement said, "A sum of Rs 200 will be added on routes less than 1000 km distance, and Rs 400 on routes longer than 1000 km distance."

It also said, "The surcharge will be applicable on all domestic trips i.e. within India, and will come into effect at midnight on May 29, 2018."

Sanjay Kumar, Chief Commercial Officer, IndiGo said, “With ATF prices in India having risen around 25% in the current month compared to the same period last year, and at the highest in last three years, the airline is compelled to pass some of the increased cost burden to customers as a fuel surcharge." 

He added, "We are confident that this marginal increase in the form of fuel surcharge will not have any significant adverse impact on demand.”

With no solution or relief in sight, there is no option for flyers, but to grit their teeth and pay up! 

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Points to Note: 

-The surcharge will be applicable on domestic trips i.e. within India, effective midnight on May 29, 2018
-A sum of Rs. 200 will be added on routes less than 1000 km distance, and Rs 400 on routes longer than 1000 km distance
-A marginal increase in airfares in the form of fuel surcharge will not have any significant adverse impact on the air-traffic demand