Mumbai: Kingfisher Airlines Ltd is reconfiguring its fleet to accommodate more seats even as the traditional lean travel season gets over by the end of March.
India’s second largest airline by passenger carried also plans to fly more international routes without adding planes to its fleet.
The plan assumes significance as in a weak travel season, carriers are under pressure with brent crude crossing $100 per barrel to hit the highest level since mid-2008. Jet fuel, the single biggest expense for carriers, accounts for about 40% of their operating cost.
State-run oil firms have increased jet fuel prices by 15.48% since 1 January and airline stocks have lost heavily since then.
The country’s largest airline Jet Airways (India) Ltd, too, is converting one-third of its domestic flights into the all-economy service Jet Airways Konnect to cut costs, increase revenue in a lean season, and beat competition from low-fare rivals.
Jet Airways will create 20-25% extra seats following this, although the yield of every plane will reduce by 10-15% with the loss of the higher-priced business class seats.
1303/11 P.R. Sanjai/Live Mint
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