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LIPPO CIKARANG - Airlines in Indonesia are thinking about increasing their ticket prices to compensate for the rapidly rising global fuel prices. Recently, fuel prices have already hiked some 20 percent. Garuda Indonesia has already increased fares by an average of five percent this week, but has done this quietly.
Other major airlines in Indonesia like Lion Air and Batavia Air, are currently also considdering increasing their prices, but have also asked the government to allow them to add an additional fuel surcharge to their prices. Airlines state that 40 percent of the companies turnover is currently spent on fuel alone, and that this is increasing now global fuel prices are rising fast.
Instead of just increasing their ticket prices, airlines perfer to add a clearly visible fuel surcharge as this is a more clear indication that it's not the airline that wants to make more profit, but just a - hopefully temporary - surcharge to cope with global price increases. Prices are set to rise between five and ten percent if airlines decide to adapt fares.
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