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India's IndiGo to hike fuel charges as global jet fuel costs rise (updated)

UPDATE 1-India's IndiGo to hike fuel charges as global jet fuel costs rise

Updates with details throughout

- Indian airline IndiGo INGL.NS on Monday said it would increase its fuel charges on domestic and international routes from October 6 as aviation turbine fuel costs rise globally.

  • Fuel charges on domestic routes will increase between 375 rupees ($3.89) and 1,300 rupees, from 275 to 950 rupees, while those on international routes will rise to 1,000 to 10,000 rupees from 900 to 10,000, based on the distance travelled.

  • IndiGo had last raised fuel charges in April.

  • The move comes as aviation turbine fuel costs remain volatile due to the Iran war, with global prices rising 14% month-on-month in October, the airline said.

  • Jet fuel accounts for up to 40% of airlines' operating costs and sharp price swings can erode their profitability.

  • IndiGo posted a first-quarter loss of 3.82 billion rupees. The company said in May that it would consider hedging fuel costs to protect margins.

($1 = 96.2850 Indian rupees)


(Reporting by Abhirami G in Bengaluru; Editing by Sonia Cheema)

((abhirami.g@thomsonreuters.com))

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