Indonesia evaluates airline ticket pricing formula amid rising costs


Well-wishers look on as a Garuda Indonesia Boeing 777-300ER in retro livery, transporting Indonesian Muslim pilgrims for the annual hajj pilgrimage in Mecca, takes off from the Sultan Iskandar Muda International Airport in Blang Bintang, Aceh province on May 18, 2025. - AFP

JAKARTA: The Transportation Ministry is evaluating airline ticket prices amid mounting cost pressures, which could lead to increased airfares paid by passengers, despite the government’s longstanding efforts to keep prices affordable.

Lukman F. Laisa, the ministry’s civil aviation director general, told lawmakers on House of Representatives Commission V, which oversees infrastructure and transportation, on Thursday (May 22) that the evaluation was being conducted in light of several key considerations. He first pointed out rising airline maintenance costs, leading to higher operational expenses to reactivate aircraft, previously grounded amid the decline in travel demand during the Covid-19 pandemic.

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