Eid airfares soar despite fuel price cut

Bangladeshis planning to travel during Eid-ul-Adha are facing one of the costliest holiday seasons in recent years, as airfares on both domestic and international routes continue to climb despite a recent reduction in jet fuel prices.

Airlines and travel operators say the lingering impact of the US-Israel's aggresive war with Iran, reduced seat capacity and strong Eid demand have pushed ticket prices unusually high, with fares on many routes increasing by 30 to 40 percent higher than normal seasonal levels.

The sharp rise has hit Middle Eastern labour destinations, regional tourist hotspots and busy domestic routes alike, prompting many travellers to put their holiday plans on hold or cancel them altogether.

Industry insiders say the aviation market has yet to regain cruising altitude nearly two and a half months after the regional conflict disrupted global flight operations, pushed up fuel costs and squeezed transit capacity on key international routes.

With Eid travel demand reaching fever pitch, pressure has intensified on already strained sectors, particularly routes connecting Bangladesh with Saudi Arabia and other Gulf destinations.

According to market data, a one-way Dhaka-Riyadh ticket for late June was selling for around Tk63,800 on the Biman Bangladesh Airlines website on Sunday, while fares from Dhaka to Jeddah climbed to nearly Tk 73,700 — around Tk 10,000 higher than pre-conflict levels and almost double pre-pandemic rates.

“The impact of the war situation has not completely disappeared,” said Kamrul Islam, spokesperson for US-Bangla Airlines.

“Fuel and operational costs remain higher than before. Although fares are showing some downward adjustment on certain routes, the reduction has not yet taken effect across the market,” he said.

He added that Eid demand had created additional pressure on Middle Eastern routes and leisure destinations such as the Maldives, with most seats for the holiday period booked well in advance.

Tour operators say soaring fares are taking the wind out of many travellers’ plans, discouraging leisure tourists from making last-minute bookings this Eid season.

“Traditionally, around 30 to 35 per cent of tourists confirmed bookings at the final stage before departure. This year, only around 5 to 7 per cent are proceeding with their trips,” said Chowdhury Hasanuzzaman Rony, president of the Bangladesh Outbound Tour Operators Forum.

“People are still making enquiries about packages, but many back out after seeing the airfare,” he added.

Popular destinations including Singapore, Thailand, Malaysia, Nepal, Sri Lanka and the Maldives continue to see moderate Eid demand despite higher travel costs. However, visa complications and limited flight availability are creating fresh hurdles for travellers seeking alternative destinations.

According to tour operators, return fares to Sri Lanka have risen to between Tk 80,000 and Tk 90,000 from the usual Tk 60,000 to Tk 65,000, while Nepal fares are approaching Tk 60,000 compared with the normal Tk 40,000 to Tk 45,000 range.

Malaysia-bound tickets are also under pressure due to strong migrant worker traffic coupled with Eid demand, with return fares hovering between Tk70,000 and Tk75,000.

Industry insiders say many travellers are steering clear of Europe and other long-haul destinations because of lingering uncertainty linked to the Middle East conflict and continuing transit disruptions.

They also noted a growing shift towards corporate and business travel, particularly on Europe and North America-bound routes, where operational constraints continue to keep fares elevated.

Domestic air travel has also become significantly more expensive ahead of Eid, especially on northern routes.

A fare search on Novoair showed Saidpur-Dhaka ticket prices for 31 May ranging from Tk 9,149 to Tk 12,149.

Novoair Director of Sales and Marketing Sohail Majid said passengers often focus on the highest published fares, although many seats are sold under promotional offers.

“On the Saidpur route, tickets are still available from Tk 3,650,” he said, adding that the airline reduced fares after the government lowered jet fuel prices.

The Bangladesh Energy Regulatory Commission recently cut aviation fuel prices by Tk39.57 per litre with effect from 23 May. Domestic Jet A-1 fuel prices were reduced to Tk165.88 per litre from Tk205.45, while international fuel prices were also lowered.

Despite the reduction, airlines say operational expenses remain above pre-war levels and fuel surcharges continue to keep fares high during the peak Eid travel season.