India's budget carrier IndiGo Airlines on Thursday (October 5) announced the imposition of fuel charge on domestic and international routes to compensate for the rising prices of Aviation Turbine Fuel (ATF). This fuel charge will be effective from 12 midnight tonight.
Indigo said, 'This decision has been taken after the increase in the prices of Aviation Turbine Fuel (ATF). There has been a continuous increase in the prices of ATF for the last three months. ATF forms a major part of an airline's operating expenses. Increase in ATF prices increases the cost, to adjust which the airline has to increase the fares.
Indigo said that under the new pricing structure, passengers booking Indigo flights will have to pay extra fuel charge on each ticket according to the distance. This fuel charge will range from Rs 300 to Rs 1000.
According to reports, IndiGo is operating more than 1900 flights daily with its fleet of more than 320 aircraft. This airline covers 81 domestic destinations and 32 international destinations.
InterGlobe Aviation, the parent company of the country's largest airline IndiGo, had released the results of Q1FY24 i.e. the first quarter of the financial year 2024 on August 2. The company had made a net profit of Rs 3,090.7 crore in the April-June quarter. The company had suffered a loss of Rs 1,064.3 crore in Q1FY23 a year ago.
Along with this, the company's revenue in this quarter had increased by 29.8% on an annual basis to Rs 16,683 crore, which was Rs 12,855.2 crore in the same period of the last financial year. There was a 236% jump in the company's profit in Q1FY24 compared to the fourth quarter of financial year 2023. The company had made a net profit of ₹919.8 crore in the January-March quarter.
In the June quarter, IndiGo's passenger ticket revenue stood at Rs 14,995.60 crore, an increase of 30.8% year-on-year. In Q1FY24, IndiGo has placed a fresh order for 500 aircraft, taking its outstanding order book to 1000 aircraft.