Scoot to adjust air fares

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scoot-airline
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Scoot today announced plans to adjust its fares network-wide in response to rising jet fuel price, which has surged almost 40% year on year and now stands at close to US$90 per barrel on average.

Scoot today announced plans to adjust its fares network-wide in response to rising jet fuel price, which has surged almost 40% year on year and now stands at close to US$90 per barrel on average.

Generally, Scootโ€™s fares will increase by between S$5 and S$30 per sector, depending on flight duration. Across the network, fares will increase by about 5% on average. The fare increase will take place from 1 September 2018.

With fuel comprising on average 32% of Scootโ€™s total operating costs, the rise in jet fuel prices have pushed up Scootโ€™s fuel expenditure by 31% year on year.

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

Besides increasing fares, Scoot is also looking at containing its costs. Some initiatives being considered include exploring ways to reduce fuel burn, review of suppliersโ€™ contracts and measures to improve productivity and keep manpower resources lean, among others.

About the author

Avatar of Juergen T Steinmetz

Juergen T Steinmetz

Juergen Thomas Steinmetz has continuously worked in the travel and tourism industry since he was a teenager in Germany (1977).
He founded eTurboNews in 1999 as the first online newsletter for the global travel tourism industry.

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