Indigo has abolished the fuel surcharge after the fall in ATF prices. The surcharge abolished after 3 months will be applicable on both domestic and international flights.
In a release, the airline said, ‘ATF prices are dynamic, so we will continue to change both our fares and components in response to changes in prices or market conditions.’
ATF price reduced for the third consecutive month
On January 1, ATF (Aviation Turbine Fuel) was reduced by about 4%. Earlier, there were cuts of 6% and 4% in November and December respectively. Now the new prices are Rs 1.02 lakh per kg.
Removal of the surcharge will affect most routes in India. Because out of 10 flights in India, 6 are of Indigo. Let us tell you that before the reduction in these three months, there was an increase in ATF for 4 months, because the prices of crude oil were continuously increasing.
Due to this, Indigo was forced to impose a surcharge. About 40-45% of the total operational cost of an airline is accounted for by fuel expenses.
Then in October, while imposing the surcharge, the airline had said, ‘ATF forms a major part of the operating expenses of an airline, hence due to the increase in fuel prices, it is necessary to change the fares.’
