IndiGo Cuts Costs of Tickets: Airfares May Drop Rs 1000 as Fuel Charges Waived
Budget airline IndiGo has decided to discontinue the fuel surcharge on tickets starting Thursday, January 4. This move comes as a result of the continuous increase in the prices of Aviation Turbine Fuel (ATF), and IndiGo had initiated the collection of fuel surcharge from October 2023.
Removing Fuel Surcharge to Potentially Reduce Flight Ticket Costs
Given that ATF constitutes a significant portion of an airline’s operational expenses, the rising prices of ATF lead to increased costs. With the removal of the fuel surcharge, flight tickets may now become more affordable. Previously, fuel surcharge collection ranged from INR 300 to INR 1000, depending on the ticket price.
IndiGo Operates Over 1900 Flights Daily
IndiGo boasts a fleet of over 320 aircraft, making it the largest airline in India. With this fleet, IndiGo operates more than 1900 flights daily, covering 81 domestic and 32 international destinations. It holds the highest market share in India.
IndiGo Reports Q2FY24 Profit of Rs.189 Crores
IndiGo reported a profit of ₹188.9 crores in the second quarter of FY24. This marks the first time in five years that any aviation company has reported a profit in the second quarter. The airline attributes this quarterly gain to the subdued demand season in the aviation industry.
Stock Surges After Implementation of Fuel Surcharge Removal
Following the implementation of the removal of the fuel surcharge in October, IndiGo’s stock witnessed a significant surge. The share price, which was around INR 2400 initially, has now increased to around INR 3000, reflecting a nearly 25% rise in three months.
IndiGo Becomes the 6th Largest Global Airline by Market Cap
Due to the increase in share value, IndiGo secured the position of the world’s sixth-largest airline by market capitalization on December 13. It surpassed American airline United Airlines in market capitalization, establishing its prominence in the global aviation industry.
