SIA, Scoot yet to impose fuel surcharges even as global airlines move to raise fares

SINGAPORE: Singapore Airlines (SIA) and Scoot have yet to impose fuel surcharges, even as global airlines, including those in Asia-Pacific, have moved to raise fares amid soaring jet fuel prices due to the US-Israel war against Iran.

A SIA Group spokeswoman told The Straits Times that fares for both carriers are determined by supply and demand, reflecting market conditions. She added that the group uses a fuel hedging programme to manage fuel price swings while remaining flexible to respond to changes in the operating environment.

According to Reuters, global airlines seeing their costs balloon such as Delta Air Lines and American Airlines have begun passing on higher fuel costs to travellers through fare hikes. Meanwhile, Scandinavia’s SAS AB has opted to limit its number of flights due to rising fuel costs.

Jet fuel prices have doubled in Europe and risen nearly 80% in Asia since the US-Israel strikes on Iran in late February.

In a report by The Independent Singapore last week, airlines in the Asia-Pacific region have also started—or announced plans—to raise fares. This includes AirAsia, Air India, Air New Zealand, Cathay Pacific, Hong Kong Airlines, Malaysia Airlines, Qantas Airways, and Thai Airways.

The Japan Times said earlier this month that Asian carriers, like Cathay Pacific and Singapore Airlines, are among the best positioned to weather the war, as travellers pay fares nearly 900% higher to secure flights to Asia amid some Middle East airspace closures. /TISG

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