Indonesian Carriers Seek Higher Ticket Caps Amid 72% Fuel Price Jump
Jakarta. Indonesia’s aviation industry is urging authorities to raise passenger fare caps and adjust fuel surcharges following a sharp increase in jet fuel prices, as carriers seek to maintain operational sustainability.
Denon Prawiraatmadja, chairman of the Indonesia National Air Carriers Association (INACA), said upper fare limits must be revised after state energy firm Pertamina raised aviation fuel prices effective April 1.
At Soekarno-Hatta International Airport, jet fuel prices jumped 72.45% to Rp 23,551.08 per liter from Rp 13,656.51 per liter in March. The increase marks a steep rise compared with the pre-pandemic average domestic aviation fuel price of Rp 7,970 per liter.
In international markets, aviation fuel prices rose 80.32% to $1.338 per liter from $0.742 per liter. By comparison, prices stood at around $0.6 per liter in 2019.
INACA said the surge in fuel costs has a significant impact on airline operations, noting that fuel accounts for roughly 40% of total operating expenses.
Denon called for adjustments to both fuel surcharges and fare caps to ensure airlines can continue operating sustainably while maintaining national air connectivity.
The association had previously proposed a 15% increase in fuel surcharges. However, with fuel prices rising beyond earlier projections, the scale of the adjustment is now expected to be reviewed.
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