Bengaluru: IndiGo has launched IndiGo Lite, a new fare category for passengers travelling with only cabin baggage.
The launch comes just two weeks after Air India introduced its own Basic fare, signalling a broader shift in India’s aviation market.
The new IndiGo fare includes one cabin bag weighing up to 7 kg and a personal item. Checked baggage is excluded but can be purchased separately, alongside services such as seat selection and priority boarding.
The airline said it was responding to changing passenger preferences.
“At IndiGo, we continuously evolve our product offerings to stay aligned with the changing expectations of our diverse customer segments. Designed for customers who travel light and would like to pay only for the services they need, IndiGo Lite is another step towards building a strong, fit-for-purpose product portfolio,” said Aloke Singh, Chief Strategy Officer, IndiGo.
The move closely mirrors Air India’s strategy. On 16 June, the Tata Group-owned airline launched a Basic fare family on select domestic routes. Unlike IndiGo Lite, Air India’s entry-level fare still includes a 15 kg checked baggage allowance, a 7 kg cabin bag and complimentary beverage service (tea/coffee), but drops complimentary meals, allowing passengers to purchase them separately if they wish.
Explaining the change, Air India said the new option was intended to “empower customers with greater choice and control over how they travel and what they pay for”. The airline described the fare as a “pro-consumer approach” that lets “price-conscious travellers pay only for what they need, while preserving full-service offerings for those who value an all-inclusive experience”.
Air India’s Basic and IndiGo’s Lite are only available on the respective airline’s direct channels— website, mobile app, and contact centre.
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Changing airline market
The announcements mark an important evolution in India’s airline industry. Rather than offering a single economy product, carriers are increasingly slicing the cabin into multiple fare families aimed at different kinds of travellers—from backpackers and short-haul business passengers to customers willing to pay more for bundled conveniences.
The shift also reflects mounting pressure on airline economics. Higher aviation turbine fuel prices, operational disruptions and intense fare competition have squeezed margins this year, prompting both IndiGo and Air India to trim their domestic and international networks.
Unbundling has long been a staple of low-cost airlines globally, allowing carriers to advertise lower headline fares, while earning additional revenue from baggage, meals and seat selection.