Air fares set to rise as airlines grapple with higher fuel prices

To cope with the rising costs, Scoot has announced a fare increase that will take effect on Sept 1, when one-way ticket prices will rise by between $5 and $30.
To cope with the rising costs, Scoot has announced a fare increase that will take effect on Sept 1, when one-way ticket prices will rise by between $5 and $30. ST PHOTO: SONG TAO

Travellers can expect air fares to go up as airlines are hit by rising fuel prices.

The current jet fuel price is almost at a four-year high, and is especially punishing for budget airlines, analysts said.

To cope with the rising costs, Singapore Airlines subsidiary Scoot has announced a fare increase that will take effect on Sept 1, when one-way ticket prices will rise by between $5 and $30.

Some other airlines are expected to reinstate fuel surcharges, which were removed about two years ago, experts said.

But despite higher oil prices, airlines will be wary about bumping up fares significantly because it could impact demand, they added.

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A version of this article appeared in the print edition of The Straits Times on August 03, 2018, with the headline 'Air fares set to rise as airlines grapple with higher fuel prices'. Print Edition | Subscribe