Fuel surcharge hike not to hit demand: SpiceJet

"Despite a Rs 400 increase in fuel surcharge, air fares are still 25 per cent lower than in the corresponding period last year," Samyukta Sridharan, chief commercial officer, SpiceJet told PTI.

"We don't see any impact on demand due to this hike," Sridharan said.

SpiceJet is the third private domestic air-carrier after Jet Airways and Kingfisher Airlines to hike the fuel surcharge on the back of over 12 per cent increase in Aviation Turbine fuel (ATF) prices by the oil marketing firms on June 15.

Even when demand has remained sluggish in the last couple of months, SpiceJet continues with good bookings, he said.

The hike in fuel surcharge was necessitated following a 33 per cent increase in the sale price of aviation turbine since March this year, Sridharan said.

"Due to the consecutive hikes in the sale prices of ATF, air-carriers' operating costs have also gone up," Sridharan said.

Air India and no-frill carrier SpiceJet on Thursday announced an increase in fuel surcharge per air ticket by Rs 400, with the national carrier making it effective from June 19.

Private air carriers Jet Airways, Kingfisher and their low-fare subsidiaries had hiked fuel surcharge by Rs 400 on Wednesday.