IndiGo raises fuel charge: Rs.600 to apply on Del-Mumbai flight
New Delhi, April 2 -- Jet fuel prices were hiked by 8.56% on Wednesday, with IndiGo, India's largest carrier, becoming the first to pass on the increase by announcing new fuel surcharges of up to Rs.950 per sector on domestic routes and Rs.10,000 on long-haul international flights for all new bookings from April 2.
The overall ATF (aviation turbine fuel) hike, however, was moderated - the government said it had coordinated with oil companies to pass on only a partial and staggered surge of international oil prices to domestic airlines, averting a far steeper increase.
ATF prices, which account for around 40% of an airline's operating costs, in Delhi were increased by Rs.8,289 per kilolitre to Rs.1,04,927 per KL from Rs.96,638 per KL last month. IndiGo's revised surcharge schedule starts at Rs.275 for distances up to 500 km, reaches Rs.600 per sector on routes of 1,000-1,500 km such as the busy Mumbai-Delhi corridor, and touches Rs.950 for routes above 2,000 km. Previously, the airline had a flat Rs.425 fuel charge on all domestic flights and up to Rs.2,300 on international routes.
The partial hike comes as international jet fuel prices in the region have risen sharply. According to IATA's Jet Fuel Monitor, fuel prices have risen over 130% month-on-month. The ministries of petroleum and civil aviation decided to pass on only a staggered increase to domestic airlines, while international operations will bear the full market-linked price.
Civil aviation minister K Ram Mohan Naidu said the calibrated increase would help shield passengers from steep fare hikes while easing the cost burden on airlines, supporting the continued stability of the aviation sector and ensuring smooth movement of cargo and air connectivity for trade and logistics....
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