The New Fee Structure
IndiGo has quietly increased charges for a series of add-on services. Infant travel, covering children aged between three days and two years who do not occupy a separate seat, now costs INR 3,000 ($31), up from INR 2,000 ($21). Domestic excess baggage has risen to INR 800 ($8.30) per kilogram from INR 700 ($7.30). Fast Forward, the airline's priority check-in and boarding product, has climbed to INR 650 ($7) on domestic routes from INR 450 ($5).
The adjustments extend to unaccompanied minors, travel certificates and other optional items. Each increase is modest. But taken together, they signal a deliberate push to extract more revenue from passengers who are willing to pay for convenience or necessity, while keeping headline fares unchanged.
Ancillary Revenue as a Growth Path
The move comes at a moment when IndiGo's commercial strategy is under fresh scrutiny. The carrier recently appointed Willie Walsh, former chief executive of International Airlines Group, to its board, fuelling speculation that it will adopt a more aggressive approach to non-ticket revenue. Walsh has a track record of maximising ancillary income at carriers including British Airways and Aer Lingus, and his involvement suggests that IndiGo sees room to grow in this area.
For a low-cost airline, ancillary revenue is a natural lever. It allows the carrier to keep fares competitive, attracting price-sensitive travellers, while monetising those who want extras. IndiGo already sells seat selection, meals, baggage and travel insurance. Raising fees on existing services is a straightforward way to increase yield without fundamentally altering the product.
The Commercial Question
The challenge for IndiGo is how far it can push. India's domestic air travel market is highly price-conscious. Passengers are accustomed to low fares and often view add-ons with suspicion. If fees rise too sharply or too often, the airline risks alienating customers or prompting them to switch to competitors who keep ancillary charges lower.
At the same time, IndiGo's cost base is rising. Fuel, labour and maintenance expenses have climbed, and the carrier operates in a market where fare increases are difficult to sustain. Ancillary revenue offers a buffer, but only if passengers continue to pay.
The airline's recent financial performance underscores the pressure. It swung from a large profit in the previous year to a net loss, driven by higher operating costs and capacity expansion. Growing ancillary income is one way to close the gap without raising base fares across the board.
What Comes Next
IndiGo has not disclosed how much of its total revenue comes from ancillaries, but the figure is likely lower than that of ultra-low-cost carriers in Europe or North America, where fees can account for a third or more of total income. Ryanair, for example, generates significant revenue from baggage, seat selection and priority boarding. Spirit Airlines in the United States has built its entire model around unbundled fares and high ancillary charges.
Whether IndiGo can replicate that level of ancillary penetration in India is uncertain. The market is different. Passengers are less familiar with the unbundled model, and cultural expectations around service differ. But the direction is clear. IndiGo is testing how much more it can charge for extras without undermining the low-cost proposition that has made it the country's largest carrier.
The fee increases are unlikely to be the last. As Walsh's influence grows and the airline looks for ways to boost profitability, expect more adjustments to ancillary pricing. The question is not whether IndiGo will continue to raise fees, but how far it can go before passengers push back.
