Tuesday, August 28, 2018

Airline industry is in 'great stress', says SpiceJet chief

The domestic airline industry is in "great stress" as it is grappling with high fuel prices and fall in rupee, SpiceJet chief Ajay Singh said on Monday as he indicated that fares could go up in the coming months.

His comments come against the backdrop of high crude oil prices hurting the airline industry as Aviation Turbine Fuel (ATF) alone accounts for over 40 percent of a carrier's operational costs.

"Airlines across the world are suffering from high oil prices and in India we compound the problem with significant taxes as well.

"The depreciation of rupee has been a big issue... many of our costs are denominated in dollars. Of course, there is great stress in the sector," Singh said.
28/08/18 PTI/CNBC TV18

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