Mumbai :
In a welcome move for travelers, IndiGo, one of India’s leading airlines, has announced the removal of the fuel surcharge with immediate effect.
This decision is expected to make air travel more affordable, reducing ticket prices by Rs 300 to Rs 1000.
The fuel surcharge, which was introduced in October 2023 based on distance, has now been lifted, providing relief to passengers.
Factors Driving Cost Reduction:
ATF Price Decrease:
The immediate cause for the removal of the fuel surcharge is the reduction in Aviation Turbine Fuel (ATF) prices for the third consecutive month.
In January, ATF prices witnessed a 4% decrease. The previous two months also saw reductions of 6% and 4%, respectively.
Impact on Operating Costs:
ATF accounts for approximately 40% of the operating costs of any airline.
The reduction in ATF prices directly influences the fares, making air travel more cost-effective for passengers.
ATF Prices:
Delhi: Rs 1.02 lakh per kilolitre. | Kolkata: Rs 1,10,962.83 per kiloliter.
Mumbai: Rs 95,372.43 per kiloliter. | Chennai: Rs 1,06,042.99 per kiloliter.
Stock Performance:
Current Stock Price: Around Rs 2995.
- Daily Low: Rs 2,966.00.
- Daily High: Rs 3,005.75.
- 52-Week High: Rs 3,049.95.
- 52-Week Low: Rs 1,810.65.
Market Cap: Rs 115,606 crore.
Stock Returns:
1-Week Return: 2.40%.
- 1-Month Return: 6.27%.
- 3-Month Return: 25.53%.
- 1-Year Return: 49.45%.
3-Year Return: 71.53%.
IndiGo’s decision to remove the fuel surcharge aligns with the recent trend of decreasing ATF prices,
providing a boost to the aviation sector and offering passengers a more economical travel option.
