Domestic airfares spike after jet fuel price hike

Private airline operators have raised domestic airfares by Tk1,000 to Tk1,200, depending on the destination, following a sharp 112.7% increase in jet fuel prices by the Bangladesh Petroleum Corporation (BPC) in a month.
Experts warn that the fare hike could reduce passenger demand while increasing operational pressure on airlines. The tourism sector may also face adverse impacts.
Currently, four airlines operate domestic flights in Bangladesh, including state-owned Biman Bangladesh Airlines. The three private carriers are US-Bangla Airlines, Novoair, and Air Astra, although not all airlines serve every route.
All four airlines operate flights from Dhaka to Cox’s Bazar, Chattogram, Saidpur, and Sylhet. However, only US-Bangla Airlines and Biman operate on the Dhaka-Rajshahi and Dhaka-Jashore routes. Meanwhile, only Biman serves the Dhaka-Barishal route, and that too not on a daily basis.
Kamrul Islam, general manager of US-Bangla Airlines, said the fare increase was unavoidable due to the sharp rise in jet fuel prices. “Following the BPC’s decision to raise fuel prices by over 112% in a single month, private airlines had no option but to adjust fares to cover operating costs,” he said, noting that passenger numbers may decline as a result. According to him, fares have increased by around Tk1,200 on the routes from Dhaka to Cox’s Bazar, Chattogram, Saidpur, and Sylhet, and by Tk1,000 on the Jashore and Rajshahi routes.
Visiting the ticketing platform GoZayaan, it was found that airfare from Dhaka to Cox’s Bazar on 13 April stands at Tk6,149, while fares to Sylhet and Chattogram are Tk5,849 each, and Tk5,949 to Saidpur. On the same date, tickets to Jashore are priced at Tk5,649, and Tk6,049 to Rajshahi. 
Abdus Salam Aref, president of the Association of Travel Agents of Bangladesh (ATAB), said the fare hike will have a broader negative impact. “Due to inflation, people’s purchasing power has already declined. Higher airfares are likely to discourage many travellers, prompting them to choose road transport instead,” he told the Daily Sun.
Industry experts also caution that the tourism sector could suffer. Many travellers may cancel their plans or shorten their trips due to higher travel costs.
Md Rafeuzzaman, president of the Tour Operators Association of Bangladesh, said airfare constitutes a significant portion of tour package costs. “When ticket prices rise, budget-conscious travellers are more likely to cancel trips altogether or reduce their travel duration,” he explained.

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