{"id":21532,"date":"2022-06-16T16:22:52","date_gmt":"2022-06-16T10:52:52","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=21532"},"modified":"2022-06-16T17:02:09","modified_gmt":"2022-06-16T11:32:09","slug":"spicejet-airlines-announce-warns-of-the-imminent-fare-hike","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2022\/06\/16\/spicejet-airlines-announce-warns-of-the-imminent-fare-hike\/","title":{"rendered":"SpiceJet Airlines announce warns of the imminent fare hike"},"content":{"rendered":"\n<p><span class=\"has-inline-color has-luminous-vivid-orange-color\"><strong>Airlines declaring fare hikes isn\u2019t the best way to lure potential customers, but surging fuel costs are forcing some to warn their passengers about the inevitable. India\u2019s low-cost carrier SpiceJet has told it\u2019s finding it increasingly challenging to contain ticket costs, adding that passengers could soon bear the burden of costly airline operations.<\/strong> <\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"no-option-left\">SpiceJet\u2019s&nbsp;Chairman and Managing Director Ajay Singh  <\/h2>\n\n\n\n<p><a href=\"https:\/\/in.linkedin.com\/in\/ajay-singh-b7007b61\" rel=\"noreferrer noopener sponsored nofollow\" target=\"_blank\">SpiceJet\u2019s&nbsp;Chairman and Managing Director Ajay Singh <\/a>are not mincing words about the carrier\u2019s inability to keep fares under check any longer, telling that a minimum of 10-15% growth could be seen immediately. He blames the sharp rise in aviation turbine&nbsp;fuel&nbsp;(ATF) and the weakening of the Indian currency as the primary reasons behind this, telling,<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/international-flight-today-india-news-spicejet-1024x683.jpg\" alt=\"\" class=\"wp-image-839\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/international-flight-today-india-news-spicejet-1024x683.jpg 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/international-flight-today-india-news-spicejet-600x400.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/international-flight-today-india-news-spicejet-300x200.jpg 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/international-flight-today-india-news-spicejet-768x512.jpg 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/international-flight-today-india-news-spicejet-750x500.jpg 750w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/international-flight-today-india-news-spicejet-1140x760.jpg 1140w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/international-flight-today-india-news-spicejet.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><strong>SpiceJet | Aviationa2z.com<\/strong><\/figcaption><\/figure>\n\n\n\n<p><em>\u201cATF prices have raised 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&#8221;<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><em>&#8220;The weakening of the Indian rupee against the US dollar further significantly impacts airlines as our substantial price is either dollar denominated or pegged to the dollar.&#8221;<\/em><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>The budget airline expects a minimum 10-15% increase in airfares.<\/p><\/blockquote><\/figure>\n\n\n\n<p>As the pandemic loosens its grip over the world, rising fuel price, partly driven by the&nbsp;Russia-Ukraine conflict, has appeared as the latest roadblock toward aviation recovery. It becomes even trickier in a highly price-sensitive market like India, where passengers take their business elsewhere at the slightest difference in airfare.<\/p>\n\n\n\n<p>As unpleasant as Singh\u2019s warning sounds, it\u2019s not entirely surprising. Fuel prices have been on an upward trajectory since the beginning of the year.&nbsp;India&nbsp;is particularly vulnerable as it is 85% dependent on imports to meet its oil needs. Furthermore, jet fuel makes up almost 40% of the running cost of an&nbsp;airline&nbsp;in the country.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-india-s-aviation-minister-jyotiraditya-scindia\">India\u2019s aviation minister Jyotiraditya Scindia <\/h2>\n\n\n\n<p>It\u2019s precisely for this reason that<a href=\"https:\/\/www.civilaviation.gov.in\/sites\/default\/files\/Bio_JM_Scindia.pdf\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\"> India\u2019s aviation minister Jyotiraditya Scindia<\/a>&nbsp;appealed last month&nbsp;to the central government to lower the taxes on fuel.<\/p>\n\n\n\n<p>Surprisingly, passengers seem somewhat resilient to the gradual hikes over the last few months, if various surveys and statistics are to be believed. Indian carriers are&nbsp;adding more capacity, exceeding pre-pandemic levels as need for travel surges.<\/p>\n\n\n\n<p><strong>Also, read        <\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><a href=\"https:\/\/aviationa2z.com\/index.php\/2022\/06\/16\/spicejet-airlines-announce-warns-of-the-imminent-fare-hike\/\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">SpiceJet Airlines announce warns of the imminent fare hike<\/a>         <\/strong><\/li><li><strong><a href=\"https:\/\/aviationa2z.com\/index.php\/2022\/06\/07\/emirates-cuts-the-a380-from-four-routes-this-summer\/\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">Emirates cuts the A380 from four routes this summer<\/a>                <\/strong><\/li><li><strong><a href=\"https:\/\/aviationa2z.com\/index.php\/2022\/06\/03\/noida-airport-indias-biggest-to-be-built-by-the-tata-group\/\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">Noida airport, India\u2019s biggest, to be built by the Tata group<\/a><\/strong><\/li><\/ul>\n\n\n\n<p><em>The trend is not just restricted to India. The largest aviation market in the world \u2013 the United States \u2013 is also going through something similar.&nbsp;<a href=\"https:\/\/en.wikipedia.org\/wiki\/Ed_Bastian\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">Delta Air Lines&nbsp;CEO Ed Bastian <\/a>told at an industry conference recently that despite summer fares being 30% higher than pre-COVID days, the demand is off the charts.<\/em><\/p>\n\n\n\n<p>SpiceJet hasn\u2019t been able to generate much confidence lately, and the latest announcement hasn\u2019t benefited much either. The carrier\u2019s stock fell over 3.5% on the Bombay Stock Exchange following Singh\u2019s comment.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"700\" height=\"415\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/SpiceJet-IANS-1.jpg\" alt=\"\" class=\"wp-image-18946\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/SpiceJet-IANS-1.jpg 700w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/SpiceJet-IANS-1-600x356.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/SpiceJet-IANS-1-300x178.jpg 300w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><figcaption><strong>SpiceJet | Aviationa2z.com<\/strong><\/figcaption><\/figure>\n\n\n\n<p>Owing to shaky finances, the airline already works on a&nbsp;cash and carry model&nbsp;in several airports, which needs it to pay cash upfront before using its services. Furthermore, reports of passengers complaining about shabby plane interiors, inadequate MAX pilot training, and the numerous court cases it has been involved in don\u2019t quite paint a rosy picture.<\/p>\n\n\n\n<p><strong>Still, the LCC would hope to ride the wave of high passenger need to offset any setbacks due to the fuel price surge.<\/strong><\/p>\n\n\n\n<p><strong>Thank you<\/strong><\/p>\n\n\n\n<p><strong>Stay updated with Aviationa2z.com<\/strong><\/p>\n\n\n\n<p><strong>Join our <a href=\"https:\/\/t.me\/aviationa2z\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">Telegram group <\/a>for the latest updates<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Airlines declaring fare hikes isn\u2019t the best way to lure potential customers, but surging fuel costs are forcing some to warn their passengers about the inevitable. India\u2019s low-cost carrier SpiceJet has told it\u2019s finding it increasingly challenging to contain ticket costs, adding that passengers could soon bear the burden of costly airline operations. <\/p>\n","protected":false},"author":3,"featured_media":15765,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[416],"tags":[152,392,303,79,2030,393,446,582,6196],"class_list":{"0":"post-21532","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-quick-updates","8":"tag-airlines","9":"tag-airlines-news","10":"tag-announce","11":"tag-aviation","12":"tag-aviation-a2z-news","13":"tag-aviation-news","14":"tag-spicejet","15":"tag-spicejet-airlines","16":"tag-spicejets-chairman-and-managing-director-ajay-singh"},"_links":{"self":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/21532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/comments?post=21532"}],"version-history":[{"count":4,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/21532\/revisions"}],"predecessor-version":[{"id":21543,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/21532\/revisions\/21543"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media\/15765"}],"wp:attachment":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media?parent=21532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/categories?post=21532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/tags?post=21532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}