Flight Ticket Prices to Increase by up to 13% for 2 Months

Rendy Andriyanto
Rendy Andriyanto
Gotrade Team
Reviewed by Gotrade Internal Analyst
Flight Ticket Prices to Increase by up to 13% for 2 Months

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Gotrade News - The government has just authorized airlines to increase ticket prices by up to 13% over the next two months. This decision was made in response to the rising cost of jet fuel, which has been burdening airlines' operational costs.

This policy was announced by Coordinating Minister for Economic Affairs Airlangga Hartarto. The increase aims to maintain ticket affordability for the public while ensuring the sustainability of the aviation industry amid global economic challenges.

The continuous rise in jet fuel prices is the main factor for this adjustment. In Thailand, the price of jet fuel has reached Rp 29,518 per liter, and in the Philippines, it's Rp 25,326 per liter. These costs account for around 40% of total airline tariffs, making this step crucial to implement.

To reinforce the policy, the government also increased the fuel surcharge from 10% to 38%. This applies to both jet and propeller aircraft and is accompanied by a value-added tax exemption for consumers.

The government is preparing a subsidy of approximately Rp 2.6 trillion over two months. This is part of an incentive program to ease passenger tax burdens and help airlines maintain competitive ticket prices.

Additionally, relaxing the jet fuel payment mechanism to PT Pertamina and reducing import costs for aircraft parts are further strategies. These are expected to reduce airline operational costs while enhancing the competitiveness of the maintenance and parts sector.

Minister Airlangga emphasized that this policy is dynamic and will be continuously evaluated. Global conditions, particularly geopolitical dynamics, are key considerations for the government in adjusting this strategy.

The government strives to ensure that the aviation industry remains efficient and resilient to global pressures. This policy is part of the government's support for the continuity of the national aviation industry amidst economic development challenges.


Reference:

Featured Image: GPT Image 1.5

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