SIA low-cost arm Scoot to raise air fares from Sept 1

FILE PHOTO: SilkAir, Singapore Airlines and Scoot planes sit on the tarmac at Changi Airport in Singapore October 4, 2017. REUTERS

KUALA LUMPUR: Scoot,  the low-cost arm of the Singapore Airlines Group, will raise fares by an average 5% from Sept 1 due to sharp increase in jet fuel prices.

It said on Thursday the adjustment to its fares network-wide was due to rising jet fuel price, which has surged almost 40% year on year and was nearly US$90 per barrel on average. 

With fuel comprising on average 32% of Scoot’s total operating costs, the rise in jet fuel prices have pushed up Scoot’s fuel expenditure by 31% year on year. 

“Generally, Scoot’s fares will increase by between S$5 and S$30 per sector, depending on flight duration. Across the network, fares will increase by about 5% on average,” it said.

Recall that it in March 2016, Scoot had removed fuel surcharges from its fare structure as fuel prices sank to six-year lows. 
 
Aside from fare hikes, Scoot is also looking at containing its costs by exploring ways to reduce fuel burn, review of suppliers’ contracts and measures to improve productivity and keep manpower resources lean.

Scoot took to the skies in June 2012 and merged with Tigerair Singapore in July 2017, retaining the Scoot brand and positioning it well for a new chapter of growth.