IndiGo raises fuel surcharges amid soaring jet fuel costs

IndiGo, India’s largest airline, has announced an increase in fuel surcharges for both domestic and international flights, effective October 6. The decision follows a sharp rise in Aviation Turbine Fuel (ATF) costs, which have reached decade-high levels due to geopolitical tensions in the Middle East and rising crude oil prices. The airline reported a month-on-month ATF price increase exceeding 14 percent.

Domestic surcharges will vary by distance, ranging from INR 375 for flights up to 500 km to INR 1,300 for routes exceeding 2,000 km. International charges are region-specific: SAARC routes will see charges between INR 1,000 and INR 3,000; GCC and Middle East routes will incur a flat INR 5,500 charge; and European services will attract INR 10,000.

In response to these rising costs, the Federation of Indian Airlines (FIA)—representing carriers such as Air India, IndiGo, and SpiceJet—has urged the Indian government to review the current ATF pricing formula. The FIA is advocating for a “Cost Plus” model based on actual costs and reasonable margins rather than international benchmarks. Additionally, the FIA has requested urgent intervention for the disbursement of pending funds under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to alleviate liquidity and working capital strains caused by high operating expenses.