The stock of airline operator IndiGo declined as much as 5 percent on Thursday, shedding the gains from Wednesday’s trade.
The stock opened 2.1 percent lower at Rs 4,089.95 apiece compared to its previous close of Rs 4,180.9 apiece. During the trading hours, it further declined to Rs 3,970.05, which amounted to a discount of over 5 percent from the previous close.
The stock was hovering around Rs 4,079 apiece during 1:30 PM IST. This was a decline of almost 2.5 percent.
The sell-off in the scrip came after the company announced an increase in fuel surcharge despite the government’s clarification on Wednesday that only a partial burden will be passed on to domestic airlines after the hike in aviation turbine fuel (ATF) prices.
The decline in the stock reflected investor concerns over rising airfares, which may lead to weakening demand in the aviation sector. IndiGo is the largest airline operator in the country, with a market share of over 60 percent.
The company on Wednesday raised fuel charges to range between Rs 275 and Rs 950 for domestic flights and between Rs 900 and Rs 10,000 for international flights.
The new fares will be applicable on bookings made after 1 am on Thursday.
“IndiGo has also recalibrated its domestic fuel charge to vary by different travel distances. All domestic bookings made from 0001 hrs on 02 April 2026 will include the following revised fuel charges per sector,” IndiGo said in a statement.
“Although fully offsetting the fuel price increase would require substantial fare revisions, IndiGo has passed on a relatively smaller amount to customers, keeping in mind the consequential burden on them,” it said.
The development comes alongside a steep increase in aviation turbine fuel (ATF) prices, which has forced airlines to recalibrate pricing strategies.
The airline had earlier introduced fuel charges in March, ranging from Rs 425 to Rs 2,300, as fuel costs spiked.
