Lagatar24 Desk
New Delhi, June 16: Due to rising jet fuel prices and the depreciation of the Indian rupee, SpiceJet, India’s low-cost airline, announced on Thursday that it would need to raise fares by 10-15% to stay afloat.
SpiceJet Chairman and Managing Director (CMD) Ajay Singh said on Thursday that there is no other option than to raise airfares by 10-15% to cover airline operating costs. He emphasised the continuing trend of the Indian rupee’s depreciation against the US dollar (USD) and the rise in air turbine fuel (ATF) prices.
“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,” Singh said.
Singh also emphasised the several ATF price spikes within a year, urging the government to lower taxes on jet fuel (ATF). He also claimed that aviation fuel price hikes are a hardship on airline operators.
