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For Indigo flyers, ticket prices to get cheaper after removal of fuel charge by airline

The airline today said that it has withdrawn fuel charge after reduction in ATF prices. Notably, this is third subsequent cut in ATF prices by the government.

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New Delhi: In a good news for Indigo flyers, the country’s leading budget airline on Thursday announced removing fuel charges on all domestic & international flights, with immediate effect.

The withdrawal of fuel charges on tickets come almost three months after it introduced levy on back of jet fuel prices hike. The leading carrier had introduced fuel charges in October 2023, following spike in Aviation Turbine Fuel (ATF) prices.

The airline today said that it has withdrawn fuel charge after reduction in ATF prices. Notably, this is third subsequent cut in ATF prices by the government.

“With the recent reduction in ATF prices, IndiGo is withdrawing the charge,” the airline stated.

On January 1, 2024, ATF prices were slashed by ₹4,162.5, or 3.9% to ₹101,993.17 per kl. Prior to this, the ATF prices were slashed by ₹6,854.25 per kl i.e. 6% in November and by ₹5,189.25, or 4.6%, in December 2023.

“As ATF prices are dynamic, we will continue to adjust our fares and components thereof, to respond to any change in prices or market conditions,” IndiGo said in a statement.

How will it affect airline ticket prices ?

According to market watchers, the removal in fuel charges will result in cheaper air tickets of the airline. The prices could drop anywhere from Rs 1,000.

Notably, the ATF prices account for maximum share of airline’s operational costs. Any change in ATF prices, decided by government, has a direct bearing on any airline’s ticket prices.

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