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.

Fees for domestic cancellation and booking changes have been increased from Rs 1,800 to Rs 1,899 and for international flights, it has been increased from Rs 2,250 to Rs 2,349.

Also, the excess baggage fee for five kilogram (kg) and 10 kg has been revised from Rs 900 and Rs 1,600 to Rs 990 and Rs 1,750, respectively, for domestic flights and from Rs 1,850 and Rs 3,700 to Rs 1,950 and Rs 3,900, respectively, for international flights.

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

Cancellation and excess baggage fees are an ancillary revenue for airlines and its share in SpiceJet's total revenue has grown. Other ancillary revenue sources include sale of onboard meals and seat-selection fees.

SpiceJet’s ancillary revenue rose from nine per cent in the first quarter of this year to over 11 per cent 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 per cent of the total revenue.