Book Now: IndiGo fuel surcharge returns tonight!

Tomorrow onwards, IndiGo, India’s biggest domestic carrier, has decided to impose a new fuel surcharge, in an attempt to cover the costs for fuel. This is one more change for the airline, which has, for years under the leadership of Aditya Ghosh, tried to keep fares simplified for customers.

As per IndiGo’s latest press release,

A sum of Rs 200 will be added on routes less than 1000 km distance, and Rs 400 on routes longer than 1000 km distance. The surcharge will be applicable on all domestic trips i.e. within India, and will come into effect at midnight on May 29, 2018.

As per IndiGo, ATF prices are the highest in the past three years, so the airline is compelled to pass some of the increased cost burden to customers as a fuel surcharge.

IndiGo ATR Tail

Ironically, this comes days after IndiGo’s results, where IndiGo’s CFO had committed that low fares would be responded to by low fares, and hence, the airline would like to be in a competitive situation, and not give away market share. Now, IndiGo’s new line is,

We are hopeful that the 1.5 lakh plus passengers flying with IndiGo each day will continue giving us support. We assure our customers that this move of reintroduction of fuel surcharges will not much impact the low fares that are being charged, and will not change IndiGo’s positioning as a low cost carrier that is also synonymous with being on-time and providing courteous and hassle free service.

I buy everything from that statement except the Low-cost part. IndiGo’s cost base may be low, but they still charge the same fares as the rest of the full-service carriers, continuously keeping their fares a couple of 100 rupees lower to be higher in the customer’s consideration set.

IndiGo is the first local carrier to announce passing on the cost of spiralling jet fuel to passengers. Its moves will be keenly watched, and perhaps copied by other airlines as well. I don’t envy them for being in this situation to raise fares. But I would have rather they adjusted prices rather than go behind the rally of Fuel Surcharges. After all, they recently got fined by the CCI, for fuel surcharges, and they have been fined again and again.

However, if you want to book a ticket now and save that amount, you could still book a ticket overnight and save up to 400 INR per passenger per passenger. MakeMyTrip, here we come!