Business
IndiGo CEO says no immediate fuel hedge plan
The Indian Express·
IndiGo CEO Willie Walsh said Monday the airline has no immediate plan to hedge jet fuel. Internal talks have begun on hedging as long-haul flying expands toward Airbus A350s from 2028. Jet fuel accounts for over 40 percent of IndiGo operating costs. The carrier reported a loss of nearly Rs 1,880 crore in the September quarter.
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What It Means For You
- Indian airlines remain fully unhedged, unlike many European carriers that hedge 70 to 80 percent of fuel.
- Walsh said IndiGo is talking to the government about measures to ease high jet fuel prices.
- No Indian airline joined the government jet fuel price stabilisation fund when it launched in June.
What's Happening
- Walsh framed hedging as risk management rather than a speculative fuel-price bet.
- He said hedging alone while domestic rivals stay unhedged would create asymmetric competitive risk.
- Board-level discussions are tied to the planned widebody long-haul shift.
India's unhedged fuel gap
- Asian airlines typically hedge around 40 percent of fuel needs, the report said.
- Indian carriers have raised fuel surcharges but still report losses as costs outrun those fees.
- Walsh said IndiGo would consider future government schemes if they are economically viable.
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