With Government Approval, Garuda Indonesia Prepares to Increase Airfare Prices

PT Garuda Indonesia will increase airfare prices following the government’s decision through KM 83 of 2026 regarding the adjustment of additional cost components (fuel surcharge) in domestic economy class passenger tariffs, as well as plans for a stimulus in the form of 11% VAT borne by the government (DTP). Garuda Indonesia’s President Director, Glenny Kairupan, said this policy is a strategic step in maintaining a balance between the airline’s operational continuity and the accessibility of air transport services for the public, while supporting the stability of the national aviation industry ecosystem. “As a follow-up to this policy, Garuda Indonesia will make proportional and measured fare adjustments while prioritising principles of prudence, transparency, and compliance with regulatory provisions,” Glenny stated in a written release in Jakarta on Wednesday (8/4/2026). He conveyed that evaluations will be conducted periodically in line with the dynamic movement of avtur prices. This is an impact of global aviation industry dynamics influenced by geopolitical uncertainties and fuel price fluctuations, including avtur. “Amid ongoing industry pressures, the company is also preparing mitigation steps through reviews of flight frequency and schedule optimisation on several routes as part of efforts to maintain capacity productivity and operational continuity,” Glenny said. Moving forward, Glenny added, 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. He stated that Garuda Indonesia is committed to providing safe, reliable flight services that are always present to meet the public’s mobility needs as part of its strategic mandate in supporting national connectivity for the nation’s interests.