A recent decision by Indian low-cost airline IndiGo to drop its fuel charges has caused ticket prices to drop. That’s according to local travel agents.
“This move by IndiGo has caused ticket prices in several segments like Delhi, Mumbai and parts of Kerala to drop below Dh400,” said Praveen Chowdhary from Saffron Travel and Tourism. “Ticket prices in other segments have also dropped in accordance with the move.”
It was on Thursday that the budget airline announced its decision to remove the fuel charge after a recent reduction in Aviation Turbine Fuel (ATF) prices.
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“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,” said the airline in a press release.
Another travel agent, Afi Ahmed from Smart Travels, also reported seeing lower rates. “We are seeing a drop of up to 4 per cent in ticket prices due to the cancellation of the fuel charges,” he said. “That combined with a lean travel period means that the ticket charges to India are some of the most competitive prices we have seen in recent times.”
Varying prices
IndiGo introduced the fuel charge on all its domestic and international flights in October 2023, after consecutive surges in ATF prices for several months.
The airline started levying a fuel charge from approximately Dh15 to Dh50 on every ticket after four consecutive months of increasing ATF. Starting from November, the ATF prices have been slashed for three months in a row, much to the relief of airlines and passengers.
According to Praveen, other budget airlines are likely to follow suit. “I am pretty sure there is at least one other airline which is likely to the do the same thing as IndiGo,” he said. “So, I think there will be more price drops.”