The fare hike was triggered by Chennai-headquartered low-cost carrier SpiceJet, which increased fares by a hefty 30 percent earlier this week citing rise in input costs in the wake of the rupee fall and a 6.9 per cent increase in the jet fuel prices by oil marketing firms from September 1.
Market leader IndiGo today followed its rivals and raised fares by 25 percent to offset the impact of rupee fall and spike in international crude prices. "IndiGo has revised upwards its fares, which are now 25 percent higher than earlier," a source in the budget carrier said here.
When contacted, the Gurgaon-based airline declined to comment on the issue. The fare hike was triggered by Chennai-headquartered low-cost carrier SpiceJet , which increased fares by a hefty 30 percent earlier this week citing rise in input costs in the wake of the rupee fall and a 6.9 percent increase in the jet fuel prices by oil marketing firms from September 1.
Full service carriers Jet Airways and state-run Air India, too, have increased fares by 25 percent. Incidentally, none of the airline has so far issued any official statement on the hike, in sharp contrast to ad blitzkrieg they resort to when they announce special low fares. They have declined to take media queries on the issue.
"We are restoring the fares to the normal levels which existed in June," Air India sources said earlier, adding, the decision was a fallout of increase in jet fuel prices. International oil prices have been trading between USD 105 and USD 115 a barrel since the past few months and the uptrend is influenced by the Syrian crisis.
Jet fuel prices were hiked by a steep 6.9 percent, taking the rate to Rs 75,031 per kilolitre, from September 1. This came on the back of two rounds of ATF price hikes effected in July and August by oil marketing companies. ATF prices were increased by 5.8 percent on July 1 and by another 6.3 percent on August.
SpiceJet stock price
On July 30, 2014, SpiceJet closed at Rs 14.00, down Rs 2.7, or 16.17 percent. The 52-week high of the share was Rs 28.90 and the 52-week low was Rs 12.50.
The latest book value of the company is Rs -22.24 per share. At current value, the price-to-book value of the company was -0.63.
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