IndiGo, the country's largest domestic airline, has hiked fares reintroducing fuel surcharge of Rs 200- Rs 400 on domestic routes.
IndiGo said the decision to charge the levy was needed on the back of recent spike in fuel price and depreciation in rupee – twin factors, which are impacting airline profits.
Other private airlines are also expected to follow suit and increase the fares but so far none of them have announced it.
“Aircraft fuel expenses represent the single largest item of IndiGo’s total expenses, accounting for around 40 per cent of the airline's cost of operation. Furthermore, the depreciating