Market News

Airlines raise fares after jet fuel prices increase by 48pc

safari

A Safarilink plane. FILE PHOTO | NMG

Budget carriers have kept their prices up on the back of the high cost of jet fuel which has gone up 48 percent in the last five months, hurting the middle class who normally prefer air transport to the road.

The cost of jet fuel has hit a high of Sh148 a litre at the moment from Sh100 in January, piling pressure on airlines at a time when the demand for flying has remained low as the industry is yet to recover from the effects of Covid-19.

Jambojet says the cost of their ticket has gone up by eight percent in line with the rising cost of fuel.

“We have had to adjust our fares because of expensive fuel that has increased our operation cost,” said Jambojet chief executive officer Ndegwa Karanja.

Mr Karanja said the prices would be reviewed downwards in the coming days depending on the cost of fuel.

Safarilink chief executive officer Alex Avedi said the high cost of fuel has been passed on to the cost of tickets, making them pricier.

“There has been a significant rise in the cost of fuel since January and this has had an effect on the cost of tickets,” said Mr Avedi.

Budget carrier Jambojet is today charging between Sh6,000 and Sh9,000 for a one-way ticket from Nairobi to Eldoret depending on the time that one is flying. Normally, a one-way ticket from Nairobi to Eldoret would start from Sh4,800 to Sh5,800 between Monday and Thursday.

Eldoret normally attracts cheaper fares due to low demand for passengers seeking to travel the destination. Normally flights are cheaper between Monday and Wednesday because of low demand before peaking towards the weekend.

Those travelling to Mombasa today will pay a high of Sh8,000 and the same amount on the return ticket to the capital city on Wednesday. The lowest fares on the route, which is on midday flights will go for Sh6,000.

A person travelling to Kisumu today from Nairobi will part with Sh6,000 for a one-way ticket on Jambojet and up to Sh6,800 on Safarilink. Passengers would pay as low as Sh4,500 for a one-way ticket during off-peak days.

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