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IndiGo removes fuel charge from tickets; Know why

IndiGo removed fuel charge from tickets on January 4, 2024, due to dropping ATF prices. The tax was implemented in October 2023 after jet fuel costs soared. IndiGo would adjust fares.

IndiGo removed the fuel charge from tickets on Thursday, nearly three months after imposing it to combat rising jet fuel prices. The airline charged domestic and international fuel.

The airline said decreased Aviation Turbine Fuel (ATF) prices eliminated the fuel charge on Thursday (January 4).

IndiGo, India’s largest airline, will eliminate domestic and international fuel tariffs on January 4, 2024. ATF prices surged in October 2023, causing the fuel charge. The airline spokeswoman said IndiGo will no longer charge for ATF after the price cut.

IndiGo will adjust fares as ATF costs fluctuate. Our rates and components will change with ATF prices and market conditions. IndiGo promised affordable, on-time, courteous, and hassle-free travel.

Airline fuel charges began on domestic and international services on October 6, 2023.

The decision was made due to rising ATF prices. ATF accounts for a major portion of an airline’s operating costs, requiring rate modifications to balance cost increases.

Conclusion

India’s largest airline, IndiGo, withdrew a fuel fee on tickets nearly three months after adopting it to combat rising jet fuel prices. The October 2023 charge applied to domestic and international routes. ATF costs are volatile, therefore the airline will keep adjusting tickets. To offset the rise in ATF, which accounts for a large amount of an airline’s operational costs, the fuel fee was implemented.

Sunil Pandey
Sunil Pandey
The business professional who loves penning down his thoughts/ insights on business, entrepreneurship, & startups. His ability to break down complex business concepts into easy & concise write-ups makes him a wonderful author. He believes that writing is a powerful tool for communication and education.

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