IndiGo announces revised fuel surcharges after ATF price hike

India's largest airline IndiGo has introduced new fuel surcharges of up to ₹950 per sector on domestic routes and ₹10,000 on long-haul international flights following an 8.56% rise in jet fuel prices. The government coordinated a partial and staggered increase with oil companies. The changes apply to all new bookings from April 2.

Jet fuel prices rose 8.56% on Wednesday, with ATF prices in Delhi increasing by ₹8,289 per kilolitre to ₹1,04,927 per KL from ₹96,638 last month. IndiGo, India's largest carrier, revised surcharges for domestic routes: ₹275 for up to 500 km, ₹600 for 1,000-1,500 km such as Mumbai-Delhi, and ₹950 for over 2,000 km, up from a flat ₹425 previously.

The government coordinated with oil companies for a partial and staggered ATF hike, averting a steeper rise amid surging international prices. Civil aviation minister K Ram Mohan Naidu said the calibrated increase shields passengers from sharp fare hikes while easing airline costs and supporting sector stability. In a post on X, he noted expectations of over 100% rise due to Strait of Hormuz closure, but only a 25% (₹15/litre) staggered increase for domestic airlines.

IndiGo stated international surcharges range from ₹900 to ₹10,000 per sector, passing on a smaller amount to consider customer burden. SpiceJet chairman Ajay Singh praised the moderation for helping airlines amid global crises. An industry official noted full market prices could make some international flights unviable, amid West Asia conflict forcing longer routes and higher fuel burn.

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Photorealistic image of a jetliner amid Middle East conflict, with surging fuel prices, closed airspace map, and frustrated airport passengers.
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Airlines raise fares amid Middle East war fuel surge

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Global airlines are increasing ticket prices as jet fuel costs soar due to the US-Israel conflict with Iran. Airspace closures in the region are forcing reroutes and cancellations, exacerbating the disruptions. Oil prices have fluctuated sharply, impacting carriers worldwide.

Oil marketing companies hiked commercial LPG cylinder prices by ₹993 on May 1, 2026. Prices of aviation turbine fuel for domestic carriers remained unchanged, while ATF for international airlines rose by $76.55 per kilolitre. Bulk diesel prices increased from ₹137 to ₹149 per litre.

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The Ministry of Civil Aviation has withdrawn temporary caps on domestic airfares effective March 23, 2026. The measure ends restrictions imposed after IndiGo's crisis in December 2025. Airlines have been directed to ensure transparent and reasonable pricing.

Brazilian airlines have suspended more than 2,000 flights scheduled for May amid surging aviation kerosene prices, cutting daily seat supply by about 10,000. The cancellations hit less profitable routes hardest in states such as Amazonas, Pernambuco, Goiás, and Pará. Industry leaders warn of broader adjustments if costs keep rising.

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As the 2026 Middle East War disrupts supplies, the Airlines Association of Southern Africa warns of potential jet fuel shortages beyond May. Regional prices have surged from R8.50 per liter in February to over R30 by mid-April, leading to temporary fuel surcharges on new bookings.

Hong Kong authorities have been urged to review the pricing mechanism for local fuel supplies after petrol retailers were accused of swiftly raising prices as conflict erupted in the Middle East, even though the city had not yet exhausted its weeks-long stockpile. Global fuel prices have soared since the US-Israel war with Iran broke out, disrupting traffic along the Strait of Hormuz – the key waterway that handles about 20 per cent of the world’s oil shipments. The Hong Kong, China Automobile Association criticised what it described as “unfair” price increases for fuel in the city, arguing that the petrol currently on sale would have been bought before the outbreak of the conflict.

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Airline shares across Asia plunged on Monday as oil prices spiked 20% due to the intensifying U.S.-Israeli war with Iran, exacerbating fuel costs and airspace restrictions. The conflict has stranded passengers and disrupted global travel, compounding market fears of prolonged supply shortages.

 

 

 

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