Come October, air passengers will have to pay higher fares as airlines will look to pass on costs incurred due to increase in fuel and depreciating rupee, said Ajay Singh, chairman, SpiceJet on Monday.
“In the coming months, airlines will look at increasing yields by passing on some of the cost (to passengers) incurred by them. It is tougher today when demand is weak,” Mr. Singh said on the sidelines of an event.
Lean season
He added that while the aviation industry was affected by increase in fuel costs and falling rupee, airlines had not been able to increase fares because the months of July, August and September constitute lean season when demand for air travel was less. However, once this period was over, an increase in fares was likely.
“You need to have at least 10-15% increase (in airfares) to cover existing costs”, he added.
Simultaneously, airlines would also look at ways to reduce costs and improve yields by inducting more fuel-efficient planes.
SpiceJet expects to induct its first Boeing 737 Max next month. Mr Singh said that the plane is 15% more fuel efficient and also requires less expenditure on maintenance.
