IndiGo urges ATF tax and airport-fee cuts to make air travel more affordable

IndiGo MD Rahul Bhatia said rationalising aviation turbine fuel taxes and airport charges could lower fares and unlock demand. He said ATF accounts for about 40% of airline operating costs, while user-development fees have risen by as much as 95%.

— Filed Thu, 30 Jul, 2026, 19:35 IST · Source ET Small Business · Updated

IndiGo MD Rahul Bhatia urged India to rationalise ATF taxes and airport charges, saying lower fares would unlock demand. He said airlines have absorbed cost increases, while airport fees have surged, and defended IndiGo's domestic market position.

Why this matters

IndiGo’s cost-cutting push follows its addition of more than 18,000 FY26 flights with 330 pilots and its planned October 22 exit from Chennai–Réunion services.

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