The sharp increase in aviation turbine fuel (ATF) prices and the depreciation of the rupee have left the domestic airlines with no choice but to immediately raise airfares, said Ajay Singh, chairman and managing director, SpiceJet, on June 16.
A minimum 10-15% increase in air fares is required to ensure that cost of operations are better sustained, Mr. Singh said in a statement.
The Ministry had imposed lower and upper limits on domestic airfares based on flight duration when services were resumed on May 25, 2020, after a pandemic-forced two-month lockdown. For example, airlines currently cannot charge a passenger less than ₹2,900 (excluding GST) and more than ₹8,800 (excluding GST) on flights with duration of less than 40 minutes.
