India's largest airline, IndiGo, has introduced a new low-cost fare category for passengers travelling only with cabin baggage, becoming the latest carrier to unbundle services in an effort to make air travel more affordable while coping with rising operating costs.
The new fare, branded 'IndiGo Lite', offers a lower base ticket price for economy class passengers who do not require checked-in baggage. The airline said the fare will be available across both its domestic and international network.
Bookings for IndiGo Lite opened on July 1 through the airline's direct booking channels, while travel under the new fare category will commence from July 15.
Passengers opting for IndiGo Lite will receive:
An economy class ticket at a lower base fare
An automatically assigned seat at no extra charge
A cabin baggage allowance of up to seven kilograms
No checked baggage allowance unless purchased separately
The move is aimed at travellers who typically fly with only hand luggage, allowing them to avoid paying for services they do not use.
Indian airlines have increasingly been separating services such as baggage, meals and seat selection from the base airfare, enabling passengers to customise their travel while lowering the entry-level ticket price.
The trend comes as airlines face mounting financial pressure from higher aviation turbine fuel prices, airspace disruptions linked to geopolitical tensions in West Asia, and intense competition in one of the world's fastest-growing aviation markets.
Jet fuel remains the single largest operating expense for airlines, and recent volatility in crude oil prices following the Iran conflict has further squeezed profit margins.
Last month, Air India introduced a basic economy fare aimed at price-sensitive travellers, offering tickets without complimentary meals on select routes.
Operated by InterGlobe Aviation, IndiGo is India's largest airline by market share, carrying more than 60 percent of the country's domestic passengers. Founded in 2006, the airline has built its business on a low-cost model focused on operational efficiency, a young fleet and extensive connectivity.
IndiGo serves over 90 domestic destinations and more than 40 international destinations across Asia, the Middle East, Europe and Africa.
The introduction of IndiGo Lite reflects the carrier's continued focus on offering flexible pricing options while maintaining its low-cost positioning in an increasingly competitive aviation market.