The energy crisis triggered by the ongoing war in the Middle East is all set to make your air travel costlier. India’s biggest domestic airline, IndiGo, on Friday announced it will impose Rs 425 to Rs 2,300 fuel surcharge on domestic and international flights from Friday (March 14).
“This measure is taken due to the significant surge in fuel prices following ongoing geopolitical tensions in the Middle East,” the airline said in a press release. It also added that there could be an over 85 per cent increase in fuel prices for the war-torn region, as per the IATA’s Jet Fuel Monitor.
“While offsetting the entire impact of this fuel price surge requires a very substantial adjustment to fares, IndiGo has introduced a relatively smaller amount as a fuel charge, keeping in mind the consequential burden on customers,” the airline said.
While destinations within India and the Indian subcontinent will attract Rs 450 as surcharge on fuel, people travelling to the Middle East will have to shell out Rs 900. Locations in South East Asia and China will attract Rs 1,800 as fuel surcharge while Europe will get costlier by Rs 2,300.
IndiGo’s move comes just days after Air India announced a phased fuel surcharge on domestic and international routes amid a sharp rise in jet fuel prices linked to the Iran war. Services operated by Air India Express, a subsidiary, will also be attracting fuel surcharges.
Air India said Aviation Turbine Fuel (ATF) accounts for nearly 40 per cent of an airline’s operating costs, making airlines highly sensitive to changes in fuel prices.
Since early March, ATF prices have risen sharply due to supply disruptions due to the US-Israel-Iran war in the Gulf region, pushing up operating costs for airlines.
The impact is particularly severe in India because ATF attracts high excise duty and VAT, especially in major metro cities such as Delhi and Mumbai, which further increases the cost burden for airlines.
