Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

IndiGo to Levy up to Rs 400 Surcharge to Offset Fuel Price Hike, Fares to Rise

IndiGo is the first local carrier to announce passing on the burden of spiralling jet fuel prices to the passengers.

PTI

Updated:May 29, 2018, 8:50 PM IST
facebookTwitterskypewhatsapp
IndiGo to Levy up to Rs 400 Surcharge to Offset Fuel Price Hike, Fares to Rise
File photo of an IndiGo Airlines flight.
Loading...

New Delhi: Country's largest airline IndiGo on Tuesday announced levying fuel surcharge of up to Rs 400 per passenger on domestic routes to offset rising oil prices, a move that would increase fares.

IndiGo is the first local carrier to announce passing on the burden of spiralling jet fuel prices to the passengers.

In the wake of a sharp uptick in the price of oil and the cost of Aviation Turbine Fuel (ATF), it has been decided to re-introduce fuel surcharges effective May 30, the airline said in a release.

A sum of Rs 200 would be levied on every ticket on routes having less than 1,000 kilometre distance. The amount would be Rs 400 on routes longer than 1,000 kilometre.

"A marginal increase in airfares in the form of fuel surcharge will not have any significant adverse impact on the air-traffic demand," the release said.

Aircraft fuel expenses account for around 40 per cent of the airline's operational costs, making it the single largest item of its total expenses.

"Furthermore, 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," the airline said.

The airline also said that it would review the surcharge in the light of oil prices going forward, and endeavours to be in a position to withdraw it once oil prices have moderated.

IndiGo's Chief Commercial Officer Sanjay Kumar said that with ATF prices in India having risen around 25 per cent in the current month compared to the same period last year, the airline is compelled to pass some of the increased cost burden to customers as a fuel surcharge.

"In the context of the past decade, where airfares in India have reduced by nearly 50 per cent in real terms (i.e. adjusted for inflation), we are confident that this marginal increase in the form of fuel surcharge will not have any significant adverse impact on demand," he noted.

"We are hopeful that the 1.5 lakh plus passengers flying with IndiGo each day will continue giving us support," Kumar said.

The no-frills airline operates more than 1,000 flights daily. It had a fleet of 153 Airbus A320 and 6 ATR aircraft as on March 31.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
HDFC 2,049.30 3.78
Maruti Suzuki 6,591.95 10.39
ICICI Bank 417.50 7.99
HDFC Bank 1,199.60 8.95
Reliance 1,254.35 6.39
Company Price Change %Gain
Astral Poly Tec 1,213.70 5.25
HDFC 2,052.10 3.92
SBI Life Insura 815.85 1.73
Zee Entertain 301.10 -2.49
Maruti Suzuki 6,585.25 10.89
Top Gainers
Company Price Change %Gain
Eicher Motors 17,860.20 13.38
Hero Motocorp 2,862.90 13.06
IndusInd Bank 1,419.60 10.71
UltraTechCement 4,269.65 10.43
Maruti Suzuki 6,591.95 10.39
Company Price Change %Gain
Hero Motocorp 2,866.50 13.19
Maruti Suzuki 6,585.25 10.89
IndusInd Bank 1,419.60 10.74
Bajaj Finance 3,705.60 10.19
SBI 301.70 10.09
Top Losers
Company Price Change %Gain
Power Grid Corp 196.20 -2.46
Zee Entertain 301.40 -2.41
Infosys 805.00 -1.91
TCS 2,065.45 -1.74
NTPC 119.85 -1.52
Company Price Change %Gain
Power Grid Corp 196.35 -2.39
Infosys 805.10 -1.94
TCS 2,065.60 -1.74
NTPC 119.90 -1.52

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results