New Delhi: Due to rising jet fuel prices and the depreciation of the Indian rupee, SpiceJet, India's low-cost airline, announced on Thursday that it would need to raise fares by 10-15% to sustain operation.

SpiceJet Chairman and Managing Director (CMD) Ajay Singh said on Thursday that there is no other option than to raise airfares by 10-15% to cover airline operating costs. He emphasised the continuing trend of the Indian rupee's depreciation against the US dollar (USD) and the rise in air turbine fuel (ATF) prices.

"Domestic airlines have had no alternative but to raise fares as a result of the rapid increase in jet fuel prices and the rupee's depreciation. We believe that an increase in prices of at least 10-15% is essential to ensure that operating costs are better supported",  Singh said. "Aviation turbine fuel prices have climbed by more than 120 percent since June 2021," the SpiceJet chairman added, referring to repeated ATF price hikes within a year.  

Singh requested the government to lower taxes on jet fuel (ATF), claiming that rising aviation fuel prices are putting a strain on airlines. "The large increase in ATF is unsustainable, and both the Centre and state governments must move quickly to lower ATF taxes. We have tried to absorb as much of the expense of this gasoline price increase, which accounts for more than half of our operating costs, over the last few months "he added.

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