New Delhi: Terming increase in Aviation Turbine Fuel (ATF) prices as sustainable, SpiceJet Managing Director Ajay Singh on Thursday suggested a minimum of 10-15 per cent increase in the airfare.
In a statement, he said, “The sharp increase in jet fuel prices and the depreciation of the rupee have left domestic airlines with little choice but to immediately raise fares and we believe that a minimum 10-15% increase in fares is required to ensure that cost of operations are better sustained.”
He said aviation turbine fuel prices have increased by more than 120% since June 2021 and the massive increase is not sustainable and governments, central and state, need to take urgent action to reduce taxes on ATF that are amongst the highest in the world.
‘We have in the last few months tried to absorb as much burden of this fuel price rise, which constitutes more than 50% of our operational cost, as we could. The weakening of the Indian rupee against the US dollar further significantly impacts airlines as our substantial cost is either dollar denominated or pegged to the dollar,’ he said.
The ATF or jet fuel price touched a record high after a hike of 16,3 per cent on Thursday.