Business EconomyPosted at: Oct 5 2026 6:46PM


IndiGo hikes fuel surcharge from October 6 as ATF prices surge; airfares set to rise

New Delhi, Oct 5 (UNI) IndiGo is set to increase its fuel surcharge on domestic and international flights from October 6, citing a sharp rise in aviation turbine fuel (ATF) prices amid heightened geopolitical tensions in the Middle East.
The move is likely to make air travel costlier for passengers.
This is the second increase in IndiGo's fuel surcharge since April.
The airline had introduced the surcharge in March as fuel costs remained elevated.
For domestic flights, the revised surcharge will depend on the distance travelled.
Passengers flying up to 500 km will pay an additional Rs 375, while the charge will rise to ₹600 for journeys between 501 km and 1,000 km. The surcharge has been fixed at ₹900 for flights covering 1,001-1,500 km and Rs 1,150 for distances between 1,501 km and 2,000 km. For domestic routes exceeding 2,000 km, the additional fuel charge will be Rs 1,300.
The airline has also revised fuel charges on international routes, with the amount varying according to the destination. Flights to the SAARC region will attract a surcharge ranging from Rs 1,000 to Rs 3,000, while passengers travelling to Africa will pay an additional Rs 6,000.
For flights to Europe, the revised surcharge stands at ₹10,000. The charge for destinations across Southeast Asia, the Gulf Cooperation Council (GCC), the Middle East, North Asia and East Asia has been set at Rs 5,500.
IndiGo said ATF prices have been highly volatile in recent months, with the situation worsening amid geopolitical developments in the Middle East.
According to the airline, fuel prices rose by more than 14% month-on-month, pushing ATF costs close to their highest levels seen in the past decade.
ATF accounts for a substantial portion of an airline's operating expenses. IndiGo said the sharp increase was therefore putting pressure on its cost structure and the economics of operating its network.
The airline described the latest revision as a measured adjustment, saying it had opted for a smaller increase to limit the immediate impact on passengers.
According to IndiGo, fully offsetting the increase in fuel costs would have required a much steeper rise in the surcharge. The airline said it will continue to track fuel prices and market conditions and could revise the charges again if costs remain elevated.
The surcharge increase comes as airlines continue to navigate higher operating costs. IndiGo's consolidated revenue from operations increased 19.9% year-on-year to Rs 24,584.10 crore in Q1 FY27.
However, the airline reported a consolidated net loss of Rs 237.60 crore for the quarter, compared with a net profit of Rs 2,176.30 crore in Q1 FY26.
With ATF prices remaining volatile, the latest surcharge revision is expected to add to travellers' ticket costs and increase pressure on airline operating margins.
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