IndiGo on Wednesday revised its airfares after the Centre declared that it would be raising aviation turbine fuel (ATF) prices by 25 per cent (or Rs 15 per litre).
The new fuel charges for domestic flights depend on the distance travelled, with the lowest being Rs 275 for a trip that is less than 500km to Rs 950 for trips above 2,000km.
This range gets much wider for international flights, whose fuel charges vary between Rs 2,500 and Rs 10,000.
With ATF prices in India—deregulated since 2001 and revised monthly based on international benchmarks, facing extraordinary pressure due to global energy disruptions and the closure of the Strait of Hormuz, a steep increase of over 100% was anticipated from 1 April.
— Ram Mohan Naidu Kinjarapu (@RamMNK) April 1, 2026
In this…
The highest change in fuel prices was seen in flights to places in the UK and Europe—except for Greece and Turkey—with the new costs rising to Rs 10,000.
Specifically, the new fuel surcharges for international flights will be:
Rs 2,500 for short-haul routes
Rs 5,000 for Gulf and Southeast Asia
Rs 10,000 for Europe-bound sectors
The new fuel charges will apply to all bookings made after 1 AM on Thursday, and are one of the first major changes introduced to one of India's biggest airlines since it got a new chief, William Walsh, on Tuesday.
Walsh, an aviation veteran and chief of the International Air Transport Association (IATA), also has experience handling several major airlines, such as British Airways, Aer Lingus, and IAG, and is expected to start with IndiGo before August 3, subject to regulatory approvals.
His appointment led to a spike in IndiGo's stocks by about 10 per cent on Wednesday.
This comes as the war in the Gulf rages on, which has choked the Hormuz Strait and disrupted global energy flows.
As a result, ATF prices have risen by more than 130 per cent on a month-on-month basis, which is having a major impact on airline operating costs.
This led to the petroleum and aviation ministries announcing on Wednesday that they were absorbing the ATF price spike, in collaboration with PSU oil firms, and implementing a "partial and staggered increase" of 25 per cent (or Rs 15 per litre) for domestic airlines.
Foreign routes, therefore, have higher fares, as the market-aligned price fully applies to them.
