SANTO DOMINGO – The recent increase in the price of aviation fuel (AVTUR or Jet A-1) in the Dominican Republic is beginning to affect the cost of travel. The rise, of more than RD$21.00 per gallon in the last week, comes amid an international context marked by geopolitical tensions in the Middle East, which have driven up oil prices and, consequently, airline operating costs.
This scenario places the aviation sector in a position of adjustment, where the impact is no longer limited to the companies but is directly passed on to passengers. Dominican airlines anticipate increases in ticket prices as a measure to sustain their operations in the face of rising fuel costs, one of their main inputs.
According to industry estimates, airfares could rise between 10% and 12% in the short term, affecting both domestic travelers and international tourism. This situation is occurring against a backdrop of high demand, which could further intensify price pressures.
Airlines warn of a limit to how much they can absorb in costs
The Dominican Association of Airlines (ADLA) stated that the sector has reached a point where it can no longer absorb the increase in fuel costs without compromising its financial sustainability.
Its president, Omar Chahín Lama, explained that fuel represents between 25% and 35% of an airline's operating costs, so its price increase directly impacts the business structure.
“Airlines have no control over fuel prices, but they do have a responsibility to manage their impact to ensure continuity of service,” he said, while reiterating that the evolution of fares responds to multiple international factors and not to isolated decisions.
In that regard, the union warned that the adjustment in fares is a necessary measure to avoid further financial deterioration in the airlines.
Conflict in the Middle East fuels energy volatility
The origin of this increase lies outside the local sphere. Tensions in the Middle East, especially surrounding Iran, have generated uncertainty in global energy markets, driving up the price of oil due to the risk of supply disruptions.
This region accounts for a significant portion of global crude oil production, so any escalation of the conflict directly impacts international prices. This is compounded by economic sanctions, adjustments to trade routes, and a heightened perception of risk in energy transport.
Furthermore, the geopolitical context has forced several airlines to modify their routes to avoid conflict zones, which implies longer journeys, higher fuel consumption, and an increase in operating costs.
Direct impact on the passenger
Although the increase in AVTUR (Air Travel) fares is due to global factors, its most immediate effect is felt by the end user. The rise in ticket prices redefines the conditions of access to air travel, especially during peak travel seasons.
In the case of the Dominican Republic, where tourism and air connectivity are key pillars of the economy, this adjustment could influence travel dynamics, both for residents and international visitors.
The challenge for the sector will be to maintain a balance between the sustainability of operations and accessibility for passengers, in an international context that continues to set the pace for costs.
Sources consulted:
- Infobae
- Aeroca
- Aviationline
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