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View all search resultsAirlines push for 15% fuel surcharge, fare cap hike as costs soar
The Indonesian National Air Carriers Association (INACA) stated that airlines in other regions have already adjusted fuel surcharges, with increases ranging from 5 percent to 70 percent.
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An Indonesian airline Citilink plane taxis as a Super Air Jet plane lands on Jan. 10, 2025, at Soekarno-Hatta international airport in Tangerang, Banten. (AFP/Bay Ismoyo)
T
he Indonesian National Air Carriers Association (INACA) has urged the government to approve a 15 percent increase in the fuel surcharge and raise the domestic airfare cap (TBA) for both jet and propeller aircraft by the same margin, as airlines grapple with mounting cost pressures.
The current fuel surcharge is still based on regulations issued in 2023, while the TBA remains based on the fare ceiling set in 2019.
In addition, INACA called for temporary stimulus measures, including forgoing the value-added tax (VAT) on jet fuel and domestic tickets, easing airport service charges (PJP4U) and allowing the rescheduling of outstanding airport and navigation payments.
The association said these steps are needed to ensure “business sustainability, safety assurance and the availability of national air transport connectivity while maintaining a high level of safety”.
The request comes as airlines face intensifying pressure from global geopolitical tensions around the United States-Israeli war on Iran.
“This situation has resulted in an increase in global oil prices and the weakening of the rupiah against the US dollar, both of which significantly contribute to rising operational costs for national airlines,” INACA secretary general Bayu Sutanto said in a press release on Wednesday.
Read also: Crude tumbles, stocks rally on hopes for Iran war de-escalation
