Indian airline IndiGo NSE:INDIGO said on Wednesday it has introduced lower fares for passengers travelling with only cabin baggage, as carriers seek to unbundle services to lower ticket prices.

Last month, rival Air India also introduced a basic economy fare without complimentary meals for "price-conscious travellers".

Here are some details:

  • Indian airlines have been grappling with higher costs after the Iran war drove up jet fuel prices, their biggest expense, while also contending with airspace closures and intensifying competition

  • IndiGo's entry-level fare, called 'IndiGo Lite', is a cabin bag-only fare for the airline's economy class customers

  • The fare will be applicable across IndiGo's domestic and international flights

  • The new fare will be available for booking exclusively on IndiGo's direct channels starting July 1 and will be eligible for travel effective July 15

  • IndiGo's Lite fare will provide passengers with a lower base price with an auto-assigned seat at no additional cost, and a cabin bag allowance of up to 7 kilograms