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Scoot ticket prices to increase 5 percent due to rising fuel prices

Scoot, the budget arm of national carrier Singapore Airlines, announced that it will be increasing its fares by about 5 percent on average across its network.

The move was in response to rising jet fuel prices.

From September 1, Scoot’s fares will increase by between S$5 and S$30 per sector. Jet fuel prices have surged almost 40 percent year-on-year and are now close to US$90 (S$123) per barrel on average, the airline said.

Photo courtesy: Scoot
Photo courtesy: Scoot

Fuel comprise about 32 percent of Scoot’s total operating costs, and the rise in jet fuel prices has pumped up its fuel expenditure by 31 percent year-on-year.

The airline is also looking to reduce costs by exploring ways to reduce fuel burn, reviewing suppliers' contracts, implementing measures to improve productivity and keeping manpower resources lean, CNA said in a report.

In March 2016, Scoot removed fuel surcharges from its fare structure as fuel prices then sank to six-year lows. 

CtoI News Desk
CtoI News Desk – CtoI

Singapore-headquartered online media company targeting Indians Diaspora across Singapore, US, UK, India and UAE. Connected to India covers developments around NRIs. Cover arts, political, sports, finance, entrepreneurship, business, movies, dramas, entertainment and other news for Indians living worldwide.