SpiceJet Chairman Ajay Singh has warned that the current crude oil price environment is becoming increasingly difficult for airlines to sustain. With oil hovering around $90 per barrel, carriers may struggle to absorb the rising operating costs. In a conversation with ET Now, Singh highlighted the severity of the issue, stressing that the current oil price levels are unsustainable for airline operations.
Meanwhile, escalating crude oil prices are raising serious concerns across the aviation sector, as the pressure could soon translate into higher ticket prices and slower expansion plans.
The surge in oil prices, driven largely by tensions in the Middle East, is already creating ripple effects across global aviation. Analysts say airlines, particularly in Asia, are facing mounting financial pressure as fuel remains one of their largest expenses.
"Oil prices, even at USD 90, are unsustainable," Spicejet chairman said, cautioning that the financial strain on airlines could ripple across the aviation sector. “Airfares are unlikely to remain stable,” Ajay Singh stated, stressing the fact that the airlines are already under pressure because fuel forms a substantial part of the costs incurred during operations.
Passengers May Soon Feel The Impact
The industry’s inability to absorb rising fuel costs could soon be reflected in ticket prices.
“Airlines are not in a position to absorb all the costs,” he said in the interview, pointing out that a part of this would be passed on to airline passengers.
This means travellers could see higher fares in the coming months if oil prices remain elevated. Rising operational expenses are forcing carriers to look at ways to protect their margins while maintaining flight schedules.
Beyond ticket prices, the long-term growth plans of Indian carriers could also face challenges if fuel costs continue to climb.
“Growth plans of Indian carriers may be affected,” Ajay Singh remarked.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
