SpiceJet hikes fares by 25%; others expected to follow suit
The recent increase in fares by India's second-biggest budget carrier SpiceJet is widely expected to prompt others to start charging more from their passengers.
SpiceJet on Tuesday announced its decision of increasing ticket prices by up to 25 per cent. The carrier blamed the combination of rise in its operating costs and the steep decline in rupee for its decision of price hike.
Many rival carriers, including GoAir, Jet Airways and IndiGo, have followed suit; while Air India is expected to soon announce an increase.
Yatra. com President Sharat Dhall said that he expected an increase of between 15 per cent and 25 per cent across airline sectors is very noteworthy in the ongoing economic environment.
Speaking on the condition of anonymity, a low-cost carrier official said, "If one carrier raises fares, we will have to match it. Also, it's about time that we raised fares, since they were at record lows."
Fare of a Delhi-Mumbai one way is now more than Rs 9,000 on almost all carriers, up 23 per cent over 2012. Tickets booked even for a month in advance are now costing nearly 25 per cent higher over last year.