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Despite ATF Cap for Domestic Flights, Airfares Go up with IndiGo Raising Surcharge

The airline shifted to distance-based domestic charges and lifted international levies as jet fuel costs surged, with long-haul routes now facing fees up to Rs 10,000.

  • On Wednesday, April 1, 2026, IndiGo replaced its flat Rs 425 fuel surcharge with a distance-based tiered structure ranging from Rs 275 to Rs 950 for domestic flights, effective for bookings made from midnight.
  • Capping the domestic Aviation Turbine Fuel increase at about 8.5%, the government intervened to prevent a full market-linked hike after international jet fuel prices surged nearly 100% since last month.
  • While domestic passengers face tiered levies up to Rs 950, international and charter operators must pay full market prices, with surcharges hiked to Rs 10,000 for European routes.
  • Airlines face mounting operational pressures from longer flight paths avoiding Iranian airspace and rising war-risk insurance premiums, with some carriers rotating out nearly 30% of their fleet due to cancellations.
  • Minister for Civil Aviation Ram Mohan Naidu described the government's intervention as "partial and staggered," aiming to support the aviation sector's stability and ensure vital trade connectivity.
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Moneycontrol broke the news in India on Wednesday, April 1, 2026.
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