SpiceJet calls for hike in airfares amid depreciation of rupee, rise in jet fuel prices

New Delhi, June 16: In the wake of rising prices of jet fuel and the depreciation of the Indian Rupee, India's low-cost airline SpiceJet on Thursday called for 10-15 per cent hikes in airfares to sustain the operation.

SpiceJet Chairman and Managing Director (CMD) Ajay Singh on Thursday said there was 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. [caption id="attachment_653884" align="aligncenter" width="750"] SpiceJet calls for hike in airfares amid depreciation of rupee, rise in jet fuel prices[/caption] Also Read: Monkeypox cases in Britain surpass 500 He 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 minimum of 10-15 per cent increase in fares is required to ensure that the cost of operations is better sustained." [caption id="attachment_653882" align="aligncenter" width="750"] SpiceJet calls for hike in airfares amid depreciation of rupee, rise in jet fuel prices[/caption] 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." He 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. [caption id="attachment_653886" align="aligncenter" width="750"] SpiceJet calls for hike in airfares amid depreciation of rupee, rise in jet fuel prices[/caption] 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. Also Read | China’s capital Beijing under threat of severe Covid-19 outbreak -PTC News