IndiGo CEO William Walsh takes aim at airport monopolies as record fuel costs bite

New Delhi: IndiGo chief executive William ‘Willie’ Walsh has called for lower airport charges and taxes in India, warning that high operating costs could constrain aviation growth as airlines grapple with record jet fuel prices and rising airport tariffs.

“Lower taxes, lower airport charges, that's the way forward,” Walsh said at a media briefing on Monday, his first since taking charge as IndiGo chief executive in August.

Airport landing, parking and passenger user development fees (UDF) are among the costs factored into airfares. Indian airfares rose over 30% year-on-year in Q2FY27, primarily because of higher jet fuel prices, with airport charges and UDF also contributing.

The Airports Economic Regulatory Authority of India (AERA) regulates aeronautical charges at major airports, including landing and parking fees and UDF, through periodic reviews. At Delhi airport, for instance, AERA approved higher landing and parking charges for the five-year period beginning April 2024.

IndiGo’s airport fees and charges increased nearly 10% year-on-year and 2% sequentially to ₹1,660 crore in Q2FY27, according to its investor presentation. This was the second-highest year-on-year increase in charges for the country's largest carrier in the past four quarters.

“We're always looking for better value from the airport, so we'll continue to look for them to be much more competitive when it comes to pricing, given that they are effective monopolies,” Walsh said.

Citing his experience with airport charges in other markets, he said, “I've worked positively with some airports around the world. Some, as you know, I've been very vocal. Heathrow being a primary example of that.”

In 2021, Walsh, then head of the International Air Transport Association (IATA), had called Britain's Heathrow airport a “greedy monopoly hub” as it planned to raise airport charges. In 2024, he had flagged concerns about rising airport charges in India.

Amit Mittal, director at consultancy firm AeroIntellect Aviation, said India's limited airport and aircraft infrastructure compared with developed markets was relevant to the cost debate.

“To understand it contextually, let's look at some numbers: India has 44 airports per million sq. km, while the US has 334 airports per million sq. km. India has 0.11 airports per million people, whereas the US has 15 airports per million people. India has 0.58 commercial aircraft per million people, while the US has 20 aircraft per million people,” he said.

“In purchasing-power-parity (PPP) terms, India’s airport charges are often higher than comparable US charges for passengers, especially at major metro airports. For airline landing and parking charges, the comparison is mixed and depends heavily on the airport and aircraft size,” he said.

The call for lower airport charges comes as IndiGo faces an unprecedented fuel-price environment. Its fuel bill rose 67% in the September quarter, while fuel cost per unit of capacity increased 69%. Revenue grew 26%, backed by fare hikes, but the airline still reported a net loss of ₹1,879 crore.

Walsh said fuel accounted for more than 40% of IndiGo's costs, compared with about 32% for the global airline industry, as Indian airlines remain exposed to the full volatility of jet fuel prices. Airlines here do not hedge their fuel costs.

“I've been in the industry for 47 years. I've seen high oil prices and high jet fuel prices, but we've never seen anything like this. Jet fuel prices are at record levels and continue to be volatile. I think that will remain a feature of our industry for some time,” he said.

IndiGo is evaluating fuel hedging as it prepares for long-haul expansion, but will not introduce it until a detailed internal review is completed. “Hedging is about managing risk. It is not about betting on what the fuel price will be; it is about providing stability and managing risk,” Walsh said.

He added that hedging while domestic competitors remained unhedged could expose IndiGo to additional risk. The carrier was studying hedging policies across European, Asian and US airlines, he added.

“At the moment, we are not hedging and do not plan to do so until we have completed our comprehensive review,” Walsh said.

IndiGo plans to pass on higher fuel costs through fare hikes. It does not currently expect higher fares to affect demand in the seasonally strong October-December quarter, driven by festivals and winter travel. “The picture for the third quarter remains positive,” Walsh said.

The carrier remains non-committal about New Delhi’s proposed aviation turbine fuel (ATF) price stabilization fund. Walsh said opting out of the previous fund was the right decision because of its implications for cash flows.

“I think, the decision that was taken (to opt out of the fund) at that time was right because in effect it was like a cash flow issue that we were talking about. Obviously we will review the proposed scheme and if it makes sense, we will participate,” he added.

IndiGo's long-haul expansion also puts Mumbai in focus. The planned shift of international departures from Mumbai's existing airport to Navi Mumbai could create additional capacity for the airline to expand its international network.

The airline's experience operating wet-leased Boeing 787 aircraft had been challenging because of the closure of Pakistani airspace, elevated fuel costs and competition from airlines with fuel-hedging arrangements.

Long-haul plans remain intact, he said, but expansion would be through its own planes, the wide body A350s, which are expected to arrive in the second quarter of 2028.

Abhishek Law has spent 18 years in journalism, which in news industry terms means he has survived several newsroom restructurings, countless “urgent” press releases, and more cups of tea than he can reasonably count. Based in New Delhi, he covers aviation for Mint, a sector where aircraft, oil prices, geopolitics and airline CEOs regularly conspire to make his life interesting.<br><br>Most of his time gets occupied by translating airline jargon like ASKs, yields, load factors and fleet strategies into language that doesn’t require a pilot’s licence. His motto is simple: if readers need a glossary, he hasn’t done his job properly.<br><br>On most days, the quadragenarian is tracking airline strategies, policy changes and the occasional mid-air disruption that suddenly become a stock market story. When planes are behaving themselves (which is not very often nowadays), he strays into other corporate beats like steel, trying to figure out what’s really happening.<br><br>He loves to talk, especially ask—that one more question which people are uncomfortable with, and saving contacts in his phone as a "Source who may or may not pick up calls”. <br><br>But, on a serious note, the goal remains simple: cut through jargon, find that additional detail, and turn complicated business stories into something one can actually enjoy reading.

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