English
Air Fuel Price Hike Latest Update: A day after SpiceJet called for a hike in airfare amid rising air furl prices, IndiGo on Friday expressed concerns over the rising fuel prices and called for ticket price hike. The airline said the situation was unfavourably impacting the aviation sector.
However, the airlines urged the Central government to cut taxes and bring Aviation Turbine Fuel (ATF) under GST so that the benefit of the input tax credit can be availed.
“To facilitate recovery of the aviation sector and to make flying viable for everyone, we would request the government to at least bring ATF under GST so that the benefit of the input tax credit can be availed,” IndiGo said in a statement.
The airline further added that the constant increases in crude oil prices and depreciation in the rupee are unfavorably impacting the aviation sector.
On Thursday, SpiceJet had called for a hike in airfare prices by a minimum of 10-15 percent.
After a 16.3 percent hike on air fuel price on Thursday, the jet fuel prices or Aviation Turbine Fuel (ATF) touched a record high.
Notably, the ATF is available to airlines at Rs 1.41 lakh per kilolitre. From Rs 72,062 per kilolitre at the start of this year, the ATF prices have increased multi-fold in the last six months.
In response to the fuel price hikes and the weakening of the rupee against dollar prices, SpiceJet’s chairman and managing director Ajay Singh called for a 10-15 percent increase in fared to ensure a sustainable operation cost for airlines.
“The sharp increase in jet fuel prices and the depreciation of the rupee have left domestic airlines with little choice but to immediately raise fares and we believe that a minimum 10-15% increase in fares is required to ensure that cost of operations are better sustained,” Singh said in a statement.
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.
