Airfares on domestic routes in Bangladesh have increased shortly after a sharp rise in jet fuel prices. Within a month, jet fuel costs went up in two phases, rising by a total of Tk 107 per liter. As a result, private airlines have raised ticket prices by around Tk 1,000 to Tk 1,200 on six domestic routes.

The Bangladesh Energy Regulatory Commission announced the new fuel prices, citing the impact of the ongoing conflict involving Iran, Israel, and the United States in the Middle East.

According to BERC, the first increase came on March 8, when jet fuel prices rose by Tk 17.29 per liter. The second hike added another Tk 89.88 per liter, bringing the total increase to Tk 107 and pushing the price up to Tk 202.29 per liter.

Industry insiders say fuel accounts for 40–50% of an airline’s operating costs, so the price hike has directly affected fares. This could reduce passenger numbers and negatively impact the tourism sector, including hotels and resorts.

Private carrier US-Bangla Airlines has already adjusted fares. Its lowest ticket price has increased from Tk 4,800 to Tk 5,850. The airline clarified that the base fare remains unchanged, but a fuel surcharge has been added, which may be reduced if fuel prices fall.

Another private airline, Air Astra, also expects challenges. Its CEO noted that flights typically break even with about 80% occupancy, but higher fares could lower passenger numbers to 60% or below, making operations less sustainable if fuel prices remain high.

Meanwhile, the state-owned Biman Bangladesh Airlines has not yet decided to increase fares, though discussions may take place soon.

The Aviation Operators Association of Bangladesh warned that even a small fare increase can push travelers toward road transport, reducing airline bookings and potentially forcing flight cancellations.

Globally, fuel prices have been affected by the Middle East conflict. However, in South Asia, jet fuel prices have remained relatively stable in India and Nepal, while Pakistan has seen a sharp increase, with prices rising by around 82%.