‘Govt to meet airlines soon over rising flight ticket prices’:Following jet fuel hike, IndiGo revises fuel charges by up to ₹10,000

After the recent increase in Aviation Turbine Fuel (ATF) prices, several airlines have raised fuel surcharges. Considering the growing burden on passengers, the central government is now preparing to intervene in this matter. According to an NDTV report, the government may soon hold a meeting with airlines so that common people can get relief from expensive travel. The government has not yet issued any written directive, but airlines are being asked for clarification regarding their pricing strategy. Officials say that the government’s main objective is to ensure that passenger fares do not increase. Domestic flights up 8.5% and international prices doubled ATF prices were recently increased deliberately. The government had allowed a total increase of 25% in prices to support the aviation sector. However, to provide relief to common passengers, the effective increase for domestic operations was limited to only about 8.5%. Meanwhile, ATF prices for international operations and chartered flights have nearly doubled. It has increased from ?96,638.14 per kiloliter to ?2,07,341.22 per kiloliter. The price of domestic ATF has now reached ?1,04,927.18 per kiloliter. Changes in ATF Prices IndiGo increases fuel surcharge by up to ?10,000 Even though the government tried to keep the burden low at the domestic level, the country’s largest airline IndiGo made changes to the fuel surcharge. IndiGo has removed the earlier flat surcharge of Rs 425 and now implemented a new structure based on distance. Domestic Routes: Now a fuel surcharge ranging from Rs 275 to Rs 950 will be levied based on distance. This is a relief for short-distance flights, but long-distance domestic flights have become expensive. International Routes: This is where the maximum impact has been felt. On long-haul routes like Europe, IndiGo has increased the fuel surcharge up to Rs 10,000. These new rates have been implemented from April 2. Jet fuel is 40% of airlines’ cost Aviation sector experts say that fuel accounts for about 40% of any airline’s total operating cost. In such a situation, even a slight change in ATF prices directly impacts airlines’ profits. Airlines argue that due to increased costs, they are forced to pass this burden onto passengers. Will government intervention reduce fares? Market experts believe that after the central government’s intervention, airlines may have to reconsider their increased surcharges. The government wants airlines not to pass the entire burden onto customers, but to adjust it gradually. If the talks are successful, then in the coming days, we may see a reduction or rollback in surcharges on some routes. What is Fuel Surcharge? When oil prices increase significantly in the international market, airlines add an additional charge to the ticket instead of increasing the base fare, which is called fuel surcharge. When oil prices decrease, it can be reduced or removed, whereas changing the base fare is somewhat complex.