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Jet Airways plans to increase ancillary revenue

Passengers booking Jet Airways flights tickets will now have to pay more. The airline recently announced that it is planning to increase ancillary revenue by charging passengers for preferred seats as well as increasing on-board sales.

Jet Airways in a statement said that it is being forced to take these steps because it continues to make huge losses due to high fuel costs.

The airline is also planning to reduce ticket distribution costs by 100-200 basis points by restructuring agents’ commissions and by levying a surcharge on its Delhi flights because of increase in airport fees.
Jet Airways has posted a loss of $64.43 million (Rs 354 crore) on a consolidated basis in Q4 of 2011-12, an increase of 77 percent, as compared to the same period last year.

In order to recover the costs, the airline also had to increase the airfares twice during the period. However, Jet Airways expects the full benefit of a fare increase in the current quarter.

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