SINGAPORE: Budget airline Scoot said on Thursday (Aug 2) it will increase its fares by about 5 per cent on average across its network, in response to rising jet fuel prices.
In a news release, the low-cost arm of the Singapore Airlines Group said its fares will increase by between S$5 and S$30 per sector from Sep 1.
AdvertisementJet fuel prices have surged almost 40 per cent year-on-year and are now close to US$90 (S$123) per barrel on average, Scoot said.
With fuel comprising about 32 per cent of Scoot’s total operating costs, the rise in jet fuel prices has pushed up its fuel expenditure by 31 per cent year-on-year, the carrier said.
Scoot had removed fuel surcharges from its fare structure in March 2016 as fuel prices then sank to six-year lows.
Scoot said it is also looking to reduce costs by exploring ways to reduce fuel burn, reviewing suppliers' contracts, measures to improve productivity and keep manpower resources lean.
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