IndiGo, the nation’s largest carrier in terms of fleet and market dominance, recently announced the removal of fuel charges starting from January 4, 2024. Instead, the airline has raised its fees for seat selection, resulting in certain seats now being priced at Rs 2000 immediately. These alterations were observed on their booking platform last week and have been officially updated on their website.
The airline designates specific seats as “XL,” offering additional legroom or ease in early deplaning for the first-row seats. However, the services provided for these seats remain unchanged. Among the 180 or 186 seats on their A320/A320neo aircraft, a significant part of their fleet, 18 seats are sold as XL seats. Notably, not all XL seats are priced at Rs2000; rates vary from Rs1400 to Rs2000.
Previously ranging from Rs150 to Rs1500, seat prices have now been revised to range between Rs150 and Rs2000, marking a 33% increase at the higher end. Despite these changes, free seats toward the middle and rear of the aircraft continue to be available for booking. The price adjustments aren’t uniform, with some instances of reduced pricing.
Regarding flights operated by the ATR 72-600, of which the airline possesses over 40, there haven’t been any alterations in seat selection charges. For rows 2 and 3 on the Airbus fleet, seat selection fees have decreased from Rs450 to Rs400. However, on the A320s, the charges for rows 11 and 14 to 20 have increased from Rs250 to Rs400, even for middle seats that were previously priced at Rs150.
In its recent quarter, IndiGo reported ancillary revenue of Rs1551 crores, comprising proceeds from seat and meal selections, along with other available combinations.
IndiGo commands a substantial 60% market share in India and operates numerous monopoly or near-monopoly routes, limiting passenger choices.
While these monopoly routes witness less discounting and higher prices, the Indian market remains price-sensitive, and despite monopolistic control, IndiGo hasn’t escalated prices exorbitantly.
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