Transport
Scoot to increase fares by an average of 5% from 1 Sept in response to increase in jet fuel prices
The low-cost arm of Singapore Airlines Group, Scoot, stated that it will raise fares across its network by an average of 5 percent with effect from 1 September in response to a surge in jet fuel prices that had pushed up costs.
In a press release on Thursday, Scoot stated that it will add S$5 to S$30 to the cost of each one-way journey depending on the flight duration.
Earlier in June, the International Air Transport Association forecast average passenger yields, a proxy for air fares, would rise by 3.2 percent this year, in the first annual gain since 2011. However, it noted that the airlines would lower its annual profit estimate due to the rising cost of fuel and labour.
In May, Air New Zealand announced a 5 percent increase in domestic fares due to rising costs.
Meanwhile, Japan and Taiwan’s regulators have allowed airlines to put in place fuel surcharges to help compensate for the higher oil price.
Last week, Singapore Airlines reported a 3.2 percent decline in passenger yields for the quarter ended 30 June, including a 1.8 per cent fall at Scoot.
Scoot stated that it would look to cut costs in addition to raising fares, by exploring ways to reduce fuel burn, reviewing supplier contracts, using measures to increase productivity and keeping manpower resources lean.
It also said that the fuel comprised an average of 32 percent of its operating costs and its fuel costs had risen by 31 percent compared to a year earlier.
The airline reported a S$1 million profit in the June quarter, down from S$3 million a year earlier.
Singapore Airlines stated that there were no plans for the parent airline and its regional arm SilkAir to follow Scoot’s lead and announce specific fare rises in response to higher oil prices.
Its representative said that its airfare pricing is dynamic based on supply and demand.
-
Singapore2 days ago
Purported resignation message from Li Hongyi as Singpass director goes viral; GovTech yet to confirm authenticity
-
Singapore2 days ago
Lee Hsien Yang alleges rising repression and corruption in Singapore; government calls claims a ‘personal vendetta
-
Comments1 week ago
8World News anchor Zhang Haijie faces criticism for labelling Lee Hsien Yang as ‘unfilial son’
-
Politics1 week ago
Singapore govt accuses Lee Hsien Yang of creating ‘false urgency’ over 38 Oxley Road demolition
-
Opinion6 days ago
Where does Lee Hsien Loong stand on the future of 38 Oxley Road as the government revisits the issue?
-
Politics4 days ago
Charles Yeo claims Singapore is seeking his extradition from UK; AGC remains silent
-
Opinion1 week ago
Where is the iron in Lawrence Wong? Hiding from direct response to Lee Hsien Yang?
-
Opinion1 week ago
Evidence contradicts government claims of manipulation in Lee Kuan Yew’s Last Will