Rising Fuel Costs Push Scoot To Raise Fares

Low cost Singapore-based airline Scoot will increase its fares in September, blaming the cost of jet fuel.

The Singapore Airlines unit said it will increase fares by between SGD$5 and SGD$30 (USD$3.65 to $21.92) depending on route length. The increase is effective from September 1.

The airline said the increase comes after the price of jet fuel has risen to almost USD$90 per barrel, a 40 percent increase in the last year. Fuel is about 32 percent of the airline’s operating costs.

Scoot previously dropped fuel surcharges in March 2016, when fuel prices reached six-year lows.

Scoot said it is looking at ways to reduce costs, such as reducing fuel burn, reviewing supplier contracts and finding ways to improve productivity.