Latest update April 16th, 2026 12:40 AM
Domestic airfares to go up
…operators cite increased prices for aviation fuel
(Kaieteur News) – The Aviation Operators’ Association of Guyana (AOAG) has warned that domestic airfares will likely increase following a hike in the prices for aviation fuel.
According to the Association, prices for both Avjet and Avgas—critical fuels used by aircraft providing passenger and freight services have risen substantially. These fuels are essential to the daily operations of all domestic aviation providers, including those serving hinterland communities and remote regions.
One of the local airlines that is set to hike airfares.
The AOAG noted that, as a result of these increased operational costs, domestic carriers will be left with little choice but to adjust airfares. While the Association expressed regret over the anticipated fare hikes, it emphasised that the decision is necessary to sustain operations and ensure continued service delivery.
Domestic aviation plays a vital role in Guyana’s transportation network, particularly for communities with limited road access. Any increase in airfares is therefore expected to have a broader economic and social impact, affecting not only passenger travel but also the movement of goods and essential supplies. The announcement of hike in airfares comes even as citizens are nervous about the availability of gasoline which ran out at the pumps across the country earlier this week.
The Government of Guyana had said that the disruption was caused by a delayed shipment from a major oil company, but that vessel has since arrived and boosted stock. Prime Minister, Mark Phillips said, “I wish to emphasise that there is no need for concern, panic buying, or hoarding. Adequate fuel supplies are entering the system, and this temporary disruption is being resolved. I remind consumers that petroleum products are highly flammable and must be handled and stored with the greatest care. Storing gasoline in inappropriate containers poses a serious fire risk and significantly increases the potential for injury, loss of life, and damage to property. The Government will continue to monitor developments closely and will take all necessary measures to guarantee stable and reliable access to fuel across the nation.”
Many airlines around the world have had to take emergency measures to counter the rising cost of fuel, which typically makes up 20-40% of their operating costs.
Last week, the benchmark European jet fuel price hit an all-time high of $1,838 (£1,387) per tonne, compared with $831 before the war began.
Analysts warned that travellers should expect further ticket price rises and more cancelled flights as the conflict continues. The Gulf is a major source of aviation fuel, accounting for about 50% of Europe’s imports. The bulk of it comes through the Strait of Hormuz, which Iran has effectively closed in response to US and Israeli attacks. The increase in jet fuel prices reflects the role Middle Eastern refineries play in supplies. The Al-Zour refinery in Kuwait alone provides roughly 10% of Europe’s jet fuel imports, according to Energy Intelligence.
Air New Zealand’s cancellations are expected to hit routes in and out of Auckland, Wellington and Christchurch, with flights to smaller airports unchanged. The airline, which had already cut some flights last month, said on Tuesday the “vast majority” of customers affected by the cancellations were being offered alternative flights on the same day.
“Like airlines globally, we’re experiencing jet fuel prices that are more than double what they would usually be” a spokesperson said.
Meanwhile, Air India said it would change the fuel surcharge on its domestic flights from a flat fee to one based on the distance of the flight. It also increased its surcharges for international flights due to what it said was “one of the most challenging fuel cost environments that airlines globally have faced in recent years”. Fuel costs in the January-March period jumped 14% compared with last year, hitting $2.7bn, Delta told investors on Wednesday, a day after joining other US airlines in raising checked bag fees. With demand holding up and fuel prices still high, the airline is looking to increase airfares above already enacted price rises in the months ahead. It is also planning to cut around 3.5% of its passenger capacity, targeting red-eye and mid-week flights.
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