Country's largest airline IndiGo on Tuesday announced levying fuel surcharge of up to Rs 400 per passenger on domestic routes to offset rising oil prices, a move that would increase fares.
IndiGo is the first local carrier to announce passing on the burden of spiralling jet fuel prices to the passengers.
In the wake of a sharp uptick in the price of oil and the cost of Aviation Turbine Fuel (ATF), it has been decided to re-introduce fuel surcharges effective May 30, the airline said in a release.
A sum of Rs 200 would be levied on every ticket on routes having less than 1,000 kilometre distance. The amount would be Rs 400 on routes longer than 1,000 kilometre.
Aircraft fuel expenses account for around 40% of the airline's operational costs, making it the single largest item of its total expenses.
"Furthermore, the depreciating Indian rupee is an additional cost burden on the Indian carriers. Given this scenario for a low-cost airline, levying a surcharge has become inevitable," the airline said.
The airline also said that it would review the surcharge in the light of oil prices going forward, and endeavours to be in a position to withdraw it once oil prices have moderated.