A recent move made by IndiGo, a low-cost airline in India, to reduce the amount of money it charges for fuel has led to a decrease in the rates of plane tickets. This is what travel agents in the UAE have revealed.
"This move by IndiGo has caused ticket prices to fall in several segments such as Delhi, Mumbai, and parts of Kerala, and it has dropped below Dh400," said Praveen Chowdhary from Saffron Travel and Tourism. "This move has caused ticket prices by a significant amount." "Ticket prices in other segments have also decreased in accordance with the move," the statement claims.
Reduction in the cost of aviation turbine fuel
Following a recent decrease in the cost of Aviation Turbine Fuel (ATF), the low-cost airline made the announcement on Thursday that it will be eliminating the fuel charge.
"As ATF prices are dynamic, we will continue to adjust our fares and components thereof, to respond to any change in prices or market conditions," according to a press release released by the airline.
Abolition of fuel fees
An additional travel agent, Afi Ahmed from Smart Travels, likewise reported finding cheaper rates than the previous agent. In light of the fact that fuel charges have been eliminated, he stated that there has been a reduction of up to four percent in the prices of tickets. Because of this, as well as the fact that there is a relatively short period of time during which to go, the costs of airline tickets to India are among the most competitive that we have seen in recent times.
Various price points
In October 2023, IndiGo implemented the fuel fee on all of its domestic and international flights. This was done in response to the persistent increases in the cost of ATF that had been occurring for some months.
Following a period of four straight months during which the airline increased the ATF, the airline began charging a fuel fee on each ticket that ranged from around Dh15 to Dh50. To the great relief of both airlines and customers, the rates of the ATF have been reduced for three consecutive months, beginning in November and continuing through December.
According to Praveen, it is possible that more low-cost airlines would follow them in this manner. There is at least one more airline that is likely to do the same thing as IndiGo, he claimed. "I am pretty sure there is at least one other airline," he said. It is my opinion that there will be additional price reductions.