But the cost of flight tickets may soon be higher as the combined pressure of rising jet fuel prices and a falling rupee has reached a point where airlines need to pass this increase in operating costs on to passengers in case of higher fares. Is.
Indigo CEO Ronojoy Dutta Said, “In the pre-pandemic times, we had about 1,600 daily flights, of which 400 to 450 were international. At present, we have about 1,400 daily flights of which about 80 are international. (These numbers vary on lean travel days.) The peaks are looking good. The government has allowed 100% domestic capacity and at present our bookings are 90-95% of pre-covid levels. ,
But the steady increase in aviation turbine fuel (ATF) or jet fuel prices and depreciating rupee may now force airlines to avoid hike in fares.
“Crude oil has risen from $43 a barrel last October to $84 now. We need some relief in taxes. Fares need to reflect higher fuel price, higher operating cost (linked to falling rupee). Fuel is a problem and fares will have to be brought up.” Dutta said.
“Airlines around the world got some government help. We couldn’t find any, which is fine. But excise (11%) and other indirect taxes on fuel are very high in India. Airlines pay 21% indirect tax and this is effectively the highest for any industry in India as we do not get input tax credit on fuel. This needs to be softened as we are an important infra player,” said Dutta.
Meanwhile, preparing for the competition from Indian water systemIndiGo has ordered new “improved, softer and more comfortable seats” for its entire fleet. “The order for the new seats has been placed,” Dutta said.
Indigo is going to start getting airbus The A321 XLR (Extra Long Range) on which it will operate non-stop for up to seven hours in cities like Tel Aviv, Milan and more. Düsseldorf, It is finalizing the product for these flights which will include new seats, ovens for hot meals and in-seat plug sockets so that passengers can charge their personal electronic devices on the go.
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