SpiceJet hiked airfares amid depreciation of rupee, rise in jet fuel prices
India's low-cost airline SpiceJet on Thursday called for 10-15 per cent hikes in airfares to sustain the operation in the wake of rising prices of jet fuel and the depreciation of the Indian Rupee. Full story on Dynamite News:
New Delhi: India's low-cost airline SpiceJet on Thursday called for 10-15 per cent hikes in airfares to sustain the operation in the wake of rising prices of jet fuel and the depreciation of the Indian Rupee.
SpiceJet Chairman and Managing Director (CMD) Ajay Singh said that 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)