Domestic airfares have surged by up to TK 1,200 following 80% hike in jet fuel prices, with private airlines warning of a severe blow to the country's aviation and tourism sectors.

Bangladesh Energy Regulatory Commission (BERC) raised jet fuel prices Tuesday night, lifting per litre cost from TK 95 to TK 202 for domestic flights. International flights will now pay USD 1.3216 per litre, up from USD 0.7384.

In response, airlines increased fares on routes to Cox’s Bazar, Sylhet, Syedpur, and Chattogram by TK 1,200, while Jessore and Rajshahi routes saw TK 1,000 hikes.

Md Kamrul Islam, General Manager (Public Relations) of US-Bangla Airlines, told the media, “If fares increase, I would say there is a possibility of it becoming demotivating, and it could have an overall impact on the economy. It will not only affect airlines; it will directly impact Bangladesh’s tourism sector and the hotel industry as well. Considering all aspects, the fares should definitely be rationally reassessed.”

“Domestic travel is already beyond people’s purchasing power. We are seeing our domestic market shrinking,” Group Captain (Retd.) Mofizur Rahman secretary general, Aviation Operators Association of Bangladesh (AOAB) told the media.

He criticised BERC for ignoring industry objections saying, “We strongly opposed this increase, but our arguments were not considered.”

Aviation operators fear long-term consequences. While Pakistan and Maldives saw jet fuel prices rise by 24% and 18% respectively, Bangladesh’s sharp hike threatens sustainability of private carriers.

“If passenger income does not increase, airlines will face serious trouble in the long run,” aviation specialist Wing Commander ATM Nazrul Islam (Retired) told the media, noting lack of economic activity under the interim government.

Industry insiders said the fare hike will further erode passenger numbers, dealing a direct blow to tourism and hotel businesses. Operators have demanded urgent revision of the new price.