Catch 22: Airlines want a 15% hike in airfares but fear a drop in traffic

This comes as jet fuel price hits an all-time high after hike on Thursday

SpiceJet Chairman Ajay Singh has pitched for an increase in airfares after the jet fuel price was hiked by almost 16 per cent to an all-time high of Rs 1,41,232.87 per kilo litre in Delhi on Thursday.

Simultaneously, a weakening rupee has doubled the challenge for airlines because key cost items, notably fuel, maintenance, lease rentals, and overhaul costs are priced in dollars.

“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 per cent increase in fares is required