SpiceJet Operation Kaveri sudan
LM NEWS 24
LM NEWS 24

SpiceJet Calls For 10-15% Hike In Airfares Amid Rise In Jet Fuel Prices

SpiceJet Operation Kaveri sudan

In the wake of rising prices of jet fuel and the depreciation of the Indian Rupee, India’s low-cost airline SpiceJet on Thursday called for 10-15 per cent hikes in airfares to sustain the operation.

SpiceJet Chairman and Managing Director (CMD) Ajay Singh on Thursday said there is no option left other than to hike airfare by 10-15 per cent to meet the operation cost of airlines. He emphasised on the continued trend of the weakening of Indian rupees against US dollar (USD) and going up of air turbine fuel (ATF) prices.

Singh said, “The sharp increase in jet fuel prices and depreciation of Rupee have left domestic airlines with little choice but to immediately raise fares. we believe that a min 10-15 per cent increase in fares is required to ensure that cost of operations is better sustained.”

The SpiceJet chairman further stressed on the multiple ATF price hikes within a year and said, “Aviation turbine fuel prices have increased by more than 120 per cent since June 2021.”

Singh urged the government to reduce taxes on jet fuel (ATF) saying that the aviation fuel price hikes are a burden on the airline companies.

“The massive increase in ATF is not sustainable and governments both centre and state, need to take urgent action to reduce taxes on ATF. We, in the last few months, have tried to absorb as much burden of this fuel price rise, which constitutes more than 50 per cent of our operational cost,” he said.

Singh further highlighted the issue of the weakening of Rupees against dollar.

“The weakening of the Indian Rupee against the USD significantly impacts airlines as our substantial cost is either dollar-denominated or pegged to the dollar,” he said. (ANI)

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Privacy Settings saved!
Privacy Settings

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. Control your personal Cookie Services here.

These cookies are essential in order to enable you to move around the website and use its features. Without these cookies basic services cannot be provided.

Cookie generated by applications based on the PHP language. This is a general purpose identifier used to maintain user session variables. It is normally a random generated number, how it is used can be specific to the site, but a good example is maintaining a logged-in status for a user between pages.
  • PHPSESSID

Used on sites built with Wordpress. Tests whether or not the browser has cookies enabled
  • wordpress_test_cookie

In order to use this website we use the following technically required cookies
  • wordpress_test_cookie
  • wordpress_logged_in_
  • wordpress_sec

Decline all Services
Accept all Services
0
Would love your thoughts, please comment.x
()
x