India’s largest airline said that passengers are not getting deterred despite an increase in ticket prices to cover soaring fuel costs. Average domestic airfares have gone up by over 40% while international fares have climbed sharper as airlines levied fuel surcharge following a shoot up in jet fuel prices.“It is very clear that we need to raise fares. Right now what we are seeing is that despite the increase in ticket price, the demand is inelastic, Rahul Bhatia, managing director of the airline, told analysts in a post results call on Friday.Also Read: IndiGo Q4 Results- Co reports loss of Rs 2,536 crore vs profit a year agoGlobal average jet fuel prices rose to $195.19 a barrel for the week ended March 27 after the US and Israel launched attacks on Iran. Prices have since cooled but were still at $159.85 a barrel, about 70% higher than February levels. While the government has absorbed 75% of the increase in jet fuel prices, it hasn’t provided any such cushion on the international front.The airline said that on domestic routes it has been able to pass on the higher costs incurred from high fuel prices, while on the international routes, it has been unable to do so.
Passengers demand sticking despite higher ticket prices: IndiGo
Despite a significant increase in ticket prices due to soaring fuel costs, India's largest airline reports that passenger demand remains strong. Domestic airfares have risen over 40%, with international fares climbing even higher, as airlines pass on the increased jet fuel expenses. The airline has successfully transferred these higher costs to domestic passengers but faces challenges on international routes.
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