IndiGo’s hike reflects poor pricing power of full service carriers

India’s largest airline IndiGo announced a price hike of up to Rs 1,000 from October 6 to offset the sharp rise in jet fuel prices. It has become the first from its pack to announce the hike while its peers including Air India are yet to follow suit.

Since July 1, there has been a 30% increase in prices of aviation turbine fuel (ATF). From Rs 90,857/kl, cost of ATF has jumped to Rs 118,199/kl as of October 1, according to data supplied by Indian Oil.

“The decision follows the significant increase in ATF prices, which have surged in the last three months with consecutive price hikes every month,” IndiGo said in a statement.