Air travel set to become expensive as IndiGo joins Air India in imposing fuel surcharge

The India's largest airline by market share said it will charge a fuel surcharge of Rs 425 for flights within India and the Indian subcontinent

Domestic airline IndiGo on March 13 said it will introduce a fuel surcharge on both domestic and international routes starting March 14, as rising crude oil prices weigh on India’s aviation industry.

The move comes days after the Air India group announced a similar fuel surcharge on flight tickets. The increase comes amid escalating tensions in West Asia that have pushed global crude oil prices higher.

"This measure is taken due to the significant surge in fuel prices following the ongoing geopolitical issues in the Middle East. IATA’s Jet Fuel Monitor indicates an 85+% increase in fuel prices for the region," the airline said in a statement.

India’s largest airline by market share said it will charge a fuel surcharge of Rs 425 for flights within India and the Indian subcontinent. An additional Rs 900 will be charged for flights to the Middle East, Rs 1,800 for Southeast Asia, China and Africa, and Rs 2,300 for flights to Europe.

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The airline said the aviation turbine fuel represents a major cost for airlines and said the sudden rise in oil prices will have a material impact on all airlines’ costs and network.

IndiGo said it has introduced only “smaller amount” as fuel charge despite the rising costs requiring a “very substantial adjustments”

“While offsetting the entire impact of this fuel price surge requires a very substantial adjustment to fares, IndiGo has introduced a relatively smaller amount as a fuel charge keeping in mind the consequential burden on customers.”

The prices will be introduced from March 14 for all new bookings, adding the fuel charge.

The airline said it “regrets” the inconvenience caused due to the introduction of the extra fuel charges and pointed out that the change was driven by a sudden and substantial change in the operating environment. “IndiGo will continue to monitor the situation and make relevant adjustments as and when appropriate. IndiGo remains committed to giving wings to the nation by offering affordable, convenient and consistent travel to customers.”

Separately, IndiGo is urging the government to reduce taxes on aviation fuel and, along with rival Air India, is pressing New Delhi to persuade private airports to lower certain charges, three sources told Reuters. The requests come as escalating conflict in the Middle East adds to financial pressures on carriers.

Indian airlines are facing a double blow. The Iran war has disrupted access to Middle Eastern airspace even as Indian carriers remain barred from flying over Pakistan due to ongoing diplomatic tensions between New Delhi and Islamabad.

As a result, both airlines are incurring higher operating costs on international routes as they are forced to take longer flight paths. IndiGo has begun routing some flights to the UK via Africa, while Air India has introduced technical stops on certain services to North America.

Against this backdrop, the carriers are lobbying the government for financial relief, particularly through cuts in aviation-related taxes and airport charges, the sources said.

Earlier this week, IndiGo chief executive Pieter Elbers resigned, in an abrupt exit after months of scrutiny over the airline’s failure to adequately plan for pilot rest and duty rules—an oversight that left tens of thousands of passengers stranded. Elbers cited personal reasons for stepping down and sought a waiver of his notice period.