IndiGo removes fuel charge from today amid reduction in ATF prices

India's largest domestic airline IndiGo, operated by Interglobe Aviation Ltd, on Thursday announced removal of fuel charge with immediate effect due to recent reduction in Aviation Turbine Fuel (ATF) prices.  

"IndiGo has removed fuel charge applicable on its domestic and international routes, effective from today. The fuel charge was introduced in October 2023, following a surge in ATF prices,' said the airline's spokesperson.

Jet fuel or ATF price on Monday was cut by 4 per cent, the third straight monthly reduction, and commercial cooking gas (LPG) rates were marginally lowered by Rs 1.50 per 19-kg cylinder in line with international benchmarks.

However, the price of domestic LPG — used in household kitchens for cooking purposes — remained unchanged at Rs 903 per 14.2-kg cylinder.

ATF price was cut by Rs 4,162.5, or 3.9 per cent, in the national capital to Rs 101,993.17 per kl, according to price notifications of state-owned fuel retailers.

This is the third straight monthly reduction in jet fuel prices. ATF price was cut by almost 6 per cent (Rs 6,854.25 per kl) in November and by Rs 5,189.25, or 4.6 per cent, in December.

The three rounds of reduction have wiped away almost 45 per cent of the Rs 29,391.08 per kl increase in rates effected in four monthly tranches starting July 1.

The reduction in the price of jet fuel, which makes up for 40 per cent of an airline’s operating cost, will ease the burden on already financially strained airlines.

With inputs from PTI