IndiGo has cautioned that the ongoing conflict involving Iran, along with rising crude oil prices, is likely to impact travel demand during the summer season. The airline noted that this comes at a time when carriers are already passing on higher costs to passengers.
The budget airline, which holds more than 60 percent of the domestic market, indicated that its international summer schedule is still subject to change. On the domestic front, operations are gradually stabilising after disruptions that led to a reduction in services in December.
In a statement issued on Tuesday, an IndiGo spokesperson said there has been a sharp rise in operating costs, with both fuel prices and foreign exchange-related expenses expected to increase further.
The airline’s warning comes as the escalating situation in Iran continues to influence global oil markets and complicate flight routes. The aviation sector is currently dealing with multiple challenges, including high fuel costs, increased insurance premiums and operational hurdles caused by restricted airspace. For Indian airlines, aviation turbine fuel typically makes up around 40 percent of total operating expenses.
To manage rising costs, IndiGo introduced a fuel surcharge ranging from ₹425 to ₹2,300 on March 14. Other airlines such as Air India, Air India Express and Akasa Air have also implemented similar measures.
The spokesperson added that these fare adjustments are likely to affect passenger demand, and the airline will adjust its capacity depending on how the geopolitical situation develops.
Despite these concerns, shares of IndiGo’s parent company, InterGlobe Aviation Ltd., rose by 5.18 percent to ₹4151.15 on the BSE on Tuesday, while the benchmark Sensex closed 1.89 percent higher at 74,068.45 points.
