Responding to the Singapore government’s new airport tax increases, popular Australian budget airline Jetstar announced that they will raise fare prices for flights departing from Singapore by up to 25%.
“We are disappointed with the introduction of more airport taxes to fund Changi Airport’s Terminal 5 development. the costs and new levies will have to be passed on to customers, which mean higher airfares. Our fares for flights departing from Singapore could rise between 10 and 25 per cent, depending on the destination. The airline noted that currently around 80 per cent of its fares are sold for under S$100. Jetstar supports a fit-for-purpose development of Changi Airport which the airport itself should fund. We will continue to work with all stakeholders to ensure that costs are managed and fares remain affordable.”
The state-owned air carrier, Singapore Airlines, also said that they will increase flight prices and pass the tax increase to passengers:
“We note the new charges and will implement the necessary changes accordingly.”
A S$13.30 tax increase for passengers and a S$9 levy for transiting passengers impact budget travel the most, with many airlines and travellers now intending to skip Singapore and transit at Malaysia instead.