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Airlines May Increase Ticket Prices To Cover GST Costs

Despite the claims that air fares will come down after the implementation of GST, the latest news says that the opposite may be true. Learn more.

Updated on:  

08 min read

Updates from 13th June, 2017

The GST Council had announced some days back that the prices of economy class air travel will come down. However, it is too soon to start celebrating just yet. The recent news trickling in from the aviation sector is that airlines might increase the cost of tickets in order to offset the operational costs that transiting to a new tax system will add to their overheads.

Under GST, airlines will have to pay additional taxes on importing spares and on aircraft lease rentals. Since the margins are already thin for the sector, the additional taxes may lead to an increase in prices.

As reported in The Economic Times.

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