The government has opened the door for airlines to increase domestic\nticket prices by 13-15% amid mounting operational cost pressures. This\npolicy comes as jet fuel prices surge due to global geopolitical\ndynamics, especially conflicts in the Middle East. The government\nrecognises that the aviation industry is currently under significant\nstrain.<\/p>\n
\u201cThe Directorate General of Civil Aviation of the Ministry of\nTransportation understands the dynamics faced by the national aviation\nindustry as a result of global geopolitical developments that affect the\nrise in jet fuel prices, exchange rate fluctuations, and airline\noperational costs,\u201d said Director General of Civil Aviation Lukman F.\nLaisa, quoted on Monday (13\/4\/2026).<\/p>\n
On the other hand, the government emphasises that the policy taken is\nnot solely in favour of business players but also considers the\ninterests of the public as users of air transportation services.<\/p>\n
\u201cWe emphasise that every policy taken will prioritise a balance\nbetween the sustainability of the aviation industry and consumer\nprotection, so that air transport services remain maintained in terms of\nsafety, security, affordability, and national connectivity,\u201d Lukman\nstated.<\/p>\n
With this policy, domestic flight ticket prices are allowed to rise\nin the range of 9% to 13%. However, this tariff increase is expected to\ndirectly impact passenger demand in the near term. This is because the\npublic\u2019s purchasing power has not fully recovered, which will exacerbate\nthe impact of the ticket price rise.<\/p>\n
\u201cWith a 9-13% increase, the passenger projection will certainly be\npressured by 10-15%, especially given the current uncertain economic\nconditions,\u201d said Transportation Observer from the Indonesian\nTransportation Society (MTI), Revy Petragradia.<\/p>\n
The jet fuel price increase has become the dominant factor driving up\nflight ticket prices. Its contribution even reaches around 40% in the\ncost structure, with prices jumping from Rp13,656 to Rp23,551 per\nlitre.<\/p>\n
The government itself has tried to mitigate this pressure by\neliminating several cost components, including the admin fee for online\nticket bookings. However, this step is considered not significant enough\nto hold back the overall price increase.<\/p>\n
\u201cThe admin fee might have a slight impact, but it\u2019s not significant.\nAirlines will more heavily adjust their base fare (basic price),\u201d Revy\nsaid.<\/p>\n
To curb further impacts, the government is rolling out several\nincentives for airlines. These include setting fuel surcharges up to\n38%, government-borne VAT of 11%, and the elimination of import duties\non aircraft spare parts to zero percent.<\/p>\n
These steps are deemed appropriate because they target the main\ncomponents forming ticket tariffs, from fuel surcharges and base ticket\nprices to taxes and operational costs such as airport tax. Nevertheless,\nfuture challenges are seen as not easy. Airlines are required to\nmaintain efficiency while adapting to uncertain market conditions.<\/p>\n
\u201cIt\u2019s not just about selling tickets, but also combining them with\nhotel and tourism services in travel packages to make them more\nattractive and effective,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/number-of-indonesian-air-passengers-forecast-to-drop-by-this-much-due-to-rising-ticket-prices-1776052261", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }