SINGAPORE - Budget airline Scoot will increase its fares by between $5 and $30 per flight, depending on the journey's duration, from Sept 1.
For example, for a return trip to Sydney, the journey there is considered one flight, and the way back another.
The increase is in response to the rising price of jet fuel, which has surged almost 40 per cent year on year to US$90 per barrel on average, the company said in a statement on Thursday (Aug 2).
"With fuel comprising on average 32 per cent of Scoot's total operating costs, the rise in jet fuel prices has pushed up Scoot's fuel expenditure by 31 per cent year on year," Scoot said.
It added that in March 2016, Scoot removed fuel surcharges from its fare structure as fuel prices sank to six-year lows.
The airline said it is also exploring other ways of containing costs, such as by reducing fuel burn, reviewing suppliers' contracts as well as looking at measures to improve productivity and keep manpower resources lean.