SpiceJet hikes fares by up to 15 per cent amid sharp rise in jet fuel price and rupee slide

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Air travel is expected to get expensive amid a sharp rise in aviation turbine fuel (ATF) prices and the depreciation of the rupee, said SpiceJet Chairman and Managing Director Ajay Singh.

Singh on Thursday announced a "minimum 10-15 per cent increase in fares" in order to better sustain operations.

"ATF prices have increased by more than 120 per cent since June 2021. This 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," Singh said in a statement.

SpiceJet has in the last few months tried to absorb as much burden of this fuel price rise, which constitutes more than 50 per cent of our operational cost, as we could, he said.

"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 added.