Recently SpiceJet said that a minimum 10-15% increase in airfares was “necessary” as ATF prices have increased by 120%.
Recently SpiceJet said that a minimum 10-15% increase in airfares was “necessary” as ATF prices have increased by 120%.
Its CEO Vinod Kannan said on Sunday that the increase in airfares is “inevitable” and Vistara will increase them if other airlines do the same.
“ATF prices are going up and our fares are going up too. As part of the overall market, we look at market fares. We don’t operate in a vacuum and if other airlines increase fares and if supply There is a demand for more work, fares will increase,” Mr. Kannan told reporters on the sidelines of the IATA’s annual general meeting in Doha.
He added that the increase in ATF means that the cost of fuel is now up to 40-50% of the total cost of Indian airlines.
Recently, SpiceJet Chairman and Managing Director Ajay Singh said that a minimum 10-15% increase in airfares was “necessary” as ATF prices have increased by 120% since June last year.
While airfares up to June supported a strong demand for travel, Mr Kannan said it remains to be seen whether the hike in ticket prices is now during the traditionally low travel season between July and September. It will affect the sentiments of the passengers.
Although the government has fixed an airfare band with minimum and maximum airfares for travel within 15 days of booking, Mr Kannan said more and more people are now booking 15 days before the date of travel because of restrictions. Due to this there is uncertainty about travel and various protocols are gradually being eased.