Oil Price Surge Prompts INACA to Request 15% Increase in Upper Limit Airfare Rates

The impact of rising global oil prices and the weakening rupiah against the US dollar has led the Indonesian National Air Carriers Association (INACA) to request an increase in fuel surcharges and the upper limit tariff (TBA) for domestic flight tickets by 15 per cent.

INACA Secretary General Bayu Sutanto stated that this takes into account the current state of the aviation industry.

It is known that the influence of the ongoing geopolitical conflict between the United States (US) and Israel against Iran has made the international economic situation unconducive.

According to him, many airlines in various countries are currently adjusting operational costs by adding fuel surcharges ranging from 5-70 per cent.

These include Qantas from Australia; Korean Air and Asiana from South Korea; as well as Air Mauritius, Ethiopian Airlines, Kenya Airlines, and other carriers.

Bayu mentioned that they have compiled data and analyses regarding the national aviation sector’s impact from the geopolitical crisis.

Meanwhile, in March 2026, the average US dollar exchange rate against the rupiah reached Rp17,000, an increase of more than 20 per cent.

“Seventy per cent of airline operational costs are in US dollars, while national airline revenues are in rupiah, so the rising US dollar exchange rate will further burden the finances of national airlines,” said Bayu.

This affects the fluctuation of avtur prices in Indonesia, where in 2019 the avtur price was Rp10,442 per litre.

Meanwhile, in March 2026, it reached Rp14,000 - Rp15,500 per litre (prices vary by airport), an increase of 34 to 48 per cent.

“Avtur prices are predicted to rise further following the increase in oil prices due to the global geopolitical crisis,” he said.