MEDAN | INDATANEWS.COM ~ The ongoing conflict in the Middle East, fueled by tensions between Iran, the United States, and Israel, is putting increasing pressure on the global aviation industry. In particular, soaring crude oil prices, which briefly surpassed $100 per barrel, have led to a sharp rise in airfares.
Currently, tickets on the Jakarta – Medan route cost around IDR 2.5 million per trip.
Fuel Price Hike Drives Ticket Costs
Read Also: Governor Bobby Nasution Urges Food Security Ahead of Ramadan and Idulfitri 2026 Economic expert Gunawan Benjamin from North Sumatra explained that jet fuel (avtur) prices have surged by approximately 70 percent, significantly contributing to higher ticket prices.
"The government allows only a 13 percent increase in flight fares. Meanwhile, various relief measures have been implemented, including incentives for spare parts, tax exemptions, and the standardization of additional charges such as fuel surcharges," Gunawan said.
JET FUEL HIKE DRIVES AIRFARES UP: Gunawan Benjamin explains that a 70% rise in jet fuel prices has pushed ticket costs up to 2.5 million rupiah per trip. (PHOTO: Archive)
Inflation and Broader Economic ImpactRising ticket prices not only affect the aviation sector but also create inflationary pressure. They also impact consumers' purchasing power and several other industries, including tourism, hospitality, transportation, logistics, and food services.
"The
inflation rate resulting from recent
airfare increases is, in my calculation, at most 0.27 percent. However, the overall economic multiplier effect is significant and could strain multiple sectors nationwide," Gunawan emphasized.
He added that higher ticket costs are likely to reduce passenger numbers. Although ticket prices are rising globally, domestic and international airlines' competitiveness remains largely unchanged.
Ongoing Uncertainty in the Aviation SectorGunawan predicts a widespread decline in passenger numbers across all airlines. Although global oil prices have fallen below $100 per barrel, the effects are not immediately visible.
This is due to the slow adjustment of the jet fuel reference price, which is based on the MOPS (Mean of Platts Singapore).
"The current ceasefire for the next two weeks is only temporary and continues to create uncertainty. This could worsen airline performance, and a long-term recovery for the aviation industry is not yet foreseeable," Gunawan concluded. (IDNC)
REPORTER:
Darmailawati | EDITOR: Fik Sagala