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Scoot to raise fares by 5% on average from Sept 1 on rising fuel prices
BUDGET carrier Scoot will be raising its fares by S$5 to S$30 per sector depending on flight duration, with effect from Sept 1.
Across the network, fares will increase by 5 per cent on average.
This comes on the back of rising fuel prices, which have surged by almost 40 per cent year-on-year, and now stands at close to US$90 per barrel on average, Scoot noted.
"With fuel comprising on average 32 per cent of Scoot’s total operating costs, the rise in jet fuel prices have pushed up Scoot’s fuel expenditure by 31 per cent year-on-year," said the airline.
Besides raising fares, Scoot is also looking to contain costs. Initiatives being considered include exploring ways to reduce fuel burn, reviewing suppliers' contracts, and implementing measures to improve productivity and keep manpower resources lean, it said.
It added that the company had previously removed fuel surcharges from its fare structure in March 2016 when fuel prices sank to six-year lows.
Scoot is the low-cost arm of mainboard-listed Singapore Airlines.