Minimum 10-15 percent increase in prices required owing to ATF price hike, rupee slide: SpiceJet CMD Ajay Singh

According to Ajay Singh, Chairman and Managing Director of SpiceJet, the sudden increase in aviation turbine fuel (ATF) prices and the rupee's depreciation have left local airlines with little choice but to quickly boost rates. According to Singh, a minimum 10-15% increase in flight rates is essential to ensure that operating costs are properly supported.

Since June 2021, the price of ATF has risen by more than 120 percent. This large increase is unsustainable, and both the federal and state governments must move quickly to cut ATF taxes, which are among the highest in the world," he said.

SpiceJet has sought to absorb as much of the expense of this fuel price increase as possible over the last few months, he said. Fuel costs account for more than half of SpiceJet's operating costs.

"As our significant cost is either dollar denominated or tethered to the dollar, the weakening of the Indian rupee against the US dollar has a significant impact on airlines."