Mumbai: With rupee depreciation inflating airlines’ import costs – price of aviation turbine fuel (ATF) is up 7% – traffic growth may be at risk ahead of the festive season, if airlines’ anticipated fare hikes are more than marginal, said industry experts.
It is believed that airlines may effect a 15-30% increase in fares across all sectors.
SpiceJet said in a statement: “The rise in our operating costs has been abrupt, serious and largely driven by the rapidly weakening rupee. About 75 % of the total spending is either directly or indirectly influenced by the dollar, which has appreciated 25% this year alone. We are in no position to absorb the additional burden and we are compelled to put through the fare hikes to neutralise the impact of increase in costs.” According to travel agents, Jet Airways has started raising airfares from Tuesday. According to PTI, the airline has effected a 25% fare hike, but Jet declined comment.
05/09/13 Yuga Chaudhari/Daily News & Analysis
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It is believed that airlines may effect a 15-30% increase in fares across all sectors.
SpiceJet said in a statement: “The rise in our operating costs has been abrupt, serious and largely driven by the rapidly weakening rupee. About 75 % of the total spending is either directly or indirectly influenced by the dollar, which has appreciated 25% this year alone. We are in no position to absorb the additional burden and we are compelled to put through the fare hikes to neutralise the impact of increase in costs.” According to travel agents, Jet Airways has started raising airfares from Tuesday. According to PTI, the airline has effected a 25% fare hike, but Jet declined comment.
05/09/13 Yuga Chaudhari/Daily News & Analysis
