The Hindu Business Line : SpiceJet plans 5-7% fare hike by June next

Spicing up: The Executive Chairman of Spicejet, Mr. Siddhanta Sharma, and the Director, Mr Ajay Singh, with children from an orphanage during a joy ride on the newly inducted Boeing 737-900ER during a media preview at the IGI Airport in the Capital on Wednesday. —

Our Bureau

New Delhi, Nov. 14 The low-cost airline SpiceJet, which is on course to break-even during the current financial year, plans to increase fares by 5-7 per cent by June next year, the airline’s Executive Chairman, Mr Siddhanta Sharma, said on Wednesday.

Speaking to the media after inducting the first of the five Boeing 737-900 Extended Range aircraft, Mr Sharma said that the need for hiking fares was felt as in the recent past the cost of fuel had been increasing.

The start of the peak season during which demand for travel was increasing and the recent increase in fares would also help the airline improve its average yield per seat and move towards profitability, officials said.

Meanwhile, the airline announced that it would induct four more Boeing 737-900 Extended Range aircraft by September next year. This variety of aircraft are to be deployed on high-density traffic and long distance routes, with the latest arrival being utilised to operate the Delhi-Goa-Mumbai flight, officials said. The aircraft which carries 212 passengers, 26 more than the B 737-900, has the capacity to fly up to 5,900 km.

Order plans

The airline, which plans to have a fleet of 30 Boeing 737 aircraft, is also looking at converting the options that it has on 10 Boeing 737-800 aircraft into firm orders. The airline would have to take a final decision on the issue by the first quarter of next year, officials said.