Middle East conflict: Local airlines increase fares for domestic travel

…signal further price hikes coming as aviation fuel costs surge

Local airlines that operate flights to hinterland regions across the country are expected to increase their airfares due to the raising costs of aviation fuel as a result of the ongoing conflict in the Middle East.
In a statement on Wednesday, the Aviation Operators’ Association of Guyana (AOAG) announced that the price for Avjet and Avgas, the fuel used by aircraft for passenger and freight services by all of the domestic aircraft operators, have increased substantially.
According to the association, this “…will result in the increase of airfares to customers.”
Public Relations Consultant for the AOAG, Kit Nascimento, told Guyana Times that this price hike for domestic airfares will take effect immediately.
“There’s an overall increase for Avjet and Avgas… And then each airline would decide on its own what it will pass on to the customers,” he explained.
Based on international reports, aviation fuel prices have surged massively – more than doubling in some regions to over US$210 per barrel driven by the global supply disruptions caused by the Middle East crisis.
According to Nascimento, domestic airfares could get even higher if the Middle East war continues and fuel prices spike on the global market.
“Judging by the conditions in the world around us, it will probably get even higher – we’re talking about fuel prices here… Looking at the international situation as it stands with the war…continuing, I see no probability of the situation getting better, and probably getting worst,” he posited.
These increases come just months after nearly all local airlines agreed to reduce their airfares between seven to nine per cent for travel to hinterland locations, where the airstrips have been upgraded – something which the Guyana Government was pushing in order to make access to and from hinterland communities easier.
Moreover, these increases will not only impact the movement of people in and out of interior locations but will trigger price hikes for commodities such as food and fuel heading into those areas.
It will also affect the local tourism industry, with some tour operators already announcing increases for their packages.
During the latest episode of his ‘Tea on the Terrace’ programme, President Dr Irfaan Ali spoke about the impact of the global shocks caused by the ongoing Middle East conflict, noting that the refined products have proven to be more volatile than crude oil.
He pointed out that aviation is one of the areas being affected since with emergency fuel surcharges implemented across major carriers as well as increased baggage and ancillary fees to offset a 30 per cent hike in annual fuel budgets.
“So, that is what we’re seeing. Airlines are passing this on to the consumer,” the Guyanese Leader noted.
The Head of State went onto highlight the Latin America and the Caribbean (LAC) region’s high vulnerability, given its dependence on imported fuel for power, agriculture, and tourism, among other key industries.
“It is expected that this region will face a massive impact. Already, we are seeing the aviation sector adding a fuel surcharge that will affect tourism. In turn, that will affect all of the countries dependent on tourism…,” President Ali noted.
Already, Caribbean Airlines (CAL) has introduced a new fuel surcharge on all regional and international tickets purchased on or after April 10, 2026. This surcharge ranges from US$15 to US$25 per sector, depending on the route and will appear in the taxes and fees portion of ticket prices.
Roughly 25 per cent of global jet fuel exports and a significant portion of world LPG (Liquefied Petroleum Gas) transit through the Persian Gulf.
According to Ali, North American jet fuel prices have spiked 95 per cent since the start of conflict, jumping from $2.50 per gallon to $4.70 per gallon.
There have been reports of massive flight cancellations in Asia and Europe due to both high fuel prices as well as physical fuel shortages. Southeast Asia, which relies heavily on Gulf export, faces the most critical supply deficit.