Middle East Conflict Causes Surge in Jet Fuel Prices, Airlines Under Pressure, Airfares at Risk of Increase
JAKARTA, KOMPAS.com - The surge in aircraft fuel, or avtur, prices has been triggered by the intensifying geopolitical conflict in the Middle East, which is disrupting global energy supplies.
This situation is driving a sharp increase in avtur prices, both in the domestic and international markets, thereby placing significant pressure on the aviation industry.
Citing Pertamina data, the avtur price at Soekarno-Hatta Airport (CGK) on 1 April 2026 reached Rp 23,551 per litre, a 72.4 per cent jump compared to March’s Rp 13,656 per litre.
Meanwhile, international prices rose 80.3 per cent from $0.7 per litre to $1.338 per litre.
This sharp increase is forcing airlines to take strategic measures to sustain operations amid the cost surge.
PT Garuda Indonesia Tbk (GIAA) has prepared several mitigation steps to respond to avtur price volatility.
Garuda Indonesia’s Deputy Director, Thomas Oentoro, stated that the company is striving to maintain performance balance through more disciplined cost management. “Garuda Indonesia has prepared several mitigation measures to safeguard operational resilience and company performance stability,” Thomas said in an official statement on Tuesday (31/3/2026). He explained that the strategies include optimising fuel usage and overall operational cost efficiencies. “These measures encompass fuel management optimisation and operational cost efficiencies, as efforts to maintain balance against potential performance pressures due to rising avtur prices,” he clarified.
Additionally, Garuda continues to evaluate various mitigation options to ensure an adaptive response to industry dynamics. “Evaluation of various mitigation options is conducted continuously to ensure a prudent and adaptive response to the evolving industry dynamics,” Thomas added.
Meanwhile, PT Pelita Air Service is also feeling the direct impact of the avtur price surge.
Pelita Air’s President Director, Dendy Kurniawan, noted that the fuel price increase is exerting significant pressure on the company’s operational costs.
“The price increase is very significant, and it will naturally have a significant impact on our operating costs,” Dendy told Kompas.com on Wednesday (1/4/2026).
He revealed that the avtur price hike amounts to around 70 per cent for domestic routes and up to 80 per cent for international ones, forcing the airline to adjust its business strategies.
Nevertheless, Pelita Air assures that it will continue to maintain service quality for passengers. “Despite this, Pelita remains committed to providing the best service to customers at value-for-money prices,” he continued.
On the other hand, the avtur price surge is also prompting airlines to propose adjustments to ticket fares.