Indian airlines, including IndiGo, Air India and Akasa Air, have introduced fuel surcharges on domestic and international flights from March 14. This comes into effect after the increase in the prices of aviation turbine fuel (ATF).
Indian airlines increase ticket prices
India’s major airlines have increased their flight fares on their domestic and international flights. The rise in prices comes as geopolitical tensions in the Gulf region leading to the increase in price of aviation turbine fuel.
Since ATF accounts for more than 30% of all airline operating costs, airlines have been forced to raise fares in response to ATF’s price hike.
IndiGo Airlines released a statement that,
“IndiGo regrets the inconvenience resulting from this additional charge and reiterates that the measure has been 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.”
The aviation industry has been under scrutiny since the conflict in the Gulf region, with airlines forced to reroute flights, which leads to higher fuel consumption.
Fuel surcharge on tickets
The West Asian conflict has affected the aviation industry, as global airlines have faced disruptions since Feb. 28. Due to the airstrikes between the U.S. and Iran, flight operations have been reduced in the U.A.E. region.
It affected the major aviation hubs like Dubai, Abu Dhabi, and Doha. As airspace has opened partially and the operations are becoming normal, the airlines are now battling with higher ATF prices.
This led the Indian airlines like IndiGo, Air India and Akasa Air to increase their flight tickets on both domestic and international flights.
Indian airlines are the most affected by this issue, as India imports the bulk of its crude oil and aviation fuel, while taxes on ATF in major Indian aviation hubs such as Delhi and Mumbai further increase operating costs.
What do you think of the fuel surcharge on flight fares? Share your thoughts in the comments.
