SpiceJet increases cancellation, excess baggage fees

SpiceJet has increased its fees for cancellation, booking changes and excess baggage. The revised fees will come into effect from February 1.

Cancellation and booking changes for domestic have been increased from Rs 1800 to Rs 1899 and for international flights it has been increased from Rs 2250 to Rs 2349.

Also the excess baggage fee for 5 kgs and 10 kgs has been revised from Rs 900 and Rs 1600 to Rs 990 and Rs 1750 for domestic flights and from Rs 1850 and Rs 3700 to Rs 1950 and Rs 3900 for international flights.

Fees for cancellation and booking changes for international flights are higher as filling up international flights last minute is difficult.

Cancellation and excess baggage fees are an ancillary revenue for airlines and the share of ancillary revenue in SpiceJet’s total revenue has also grown. Other ancillary revenue sources include sales of onboard meals, seat selection fees amongst others.

SpiceJet ancillary revenue rose from 9% in the first quarter of this year to over 11% in the second quarter. This is the same as IndiGo’s earnings from ancillary sources. SpiceJet chairperson Ajay Singh plans to raise the share of ancillary business further to 25% of the total revenue.