Garuda Indonesia to Increase Airfare Prices

President Director of PT Garuda Indonesia (Persero) Tbk, Glenny Kairupan, has assured that airline operations will continue despite the increase in fuel surcharge, or additional fuel costs. Ticket prices will be raised in line with the steps determined by the government. “Garuda Indonesia will make proportional and measured adjustments to ticket prices while prioritising principles of prudence, transparency, and compliance with regulatory provisions,” he said in a written statement on Wednesday, 8 April 2026. On Monday, the government raised the fuel surcharge to 38% for jet and propeller aircraft through Ministerial Decree Number KM 83 of 2026. Previously, the maximum fuel surcharge was 10% for jet engines and 25% for propellers. Airlines are also permitted to increase ticket prices by a maximum of 9-13%. The increase is in response to the rise in global crude oil prices due to the war between the United States-Israel and Iran. The government has also exempted import duties on aircraft parts due to the rising prices of spare parts. In addition, the government is covering the 11% Value Added Tax (VAT) on tickets. “This policy is a strategic step in maintaining a balance between the sustainability of airline operations and the accessibility of air transportation services for the public, while supporting the stability of the national aviation industry ecosystem,” Glenny stated. Garuda is preparing mitigation measures through a review of optimising flight frequencies and schedules on several routes. These efforts are aimed at maintaining capacity productivity and operational continuity. Looking ahead, Glenny said Garuda Indonesia will continue to monitor geopolitical developments and global aviation industry dynamics, ensuring that every adjustment is made adaptively to maintain a balance between business sustainability and service accessibility for all levels of society. Garuda Indonesia is committed to always providing safe, reliable flight services that meet the mobility needs of the public. “As part of the strategic mandate to support national connectivity for the nation’s interests,” he added.