Airfare sees limited impact of transparency drive, fuel price cut
Airlines, meanwhile, say the jet fuel price cut effective from 14 May has yet to be reflected in fares, as they are still working on cost-adjustment strategies
Despite the interim government's efforts to curb soaring airfares by enforcing transparency in ticket bookings and cutting jet fuel prices, the impact remains limited, with undocumented bookings still widespread and airlines yet to adjust fares to reflect the reduced fuel costs, industry insiders say.
They estimate that at least 40% of bookings are still being made without proper naming or documentation.
Airlines, meanwhile, say the jet fuel price cut effective from 14 May has yet to be reflected in fares, as they are still working on cost-adjustment strategies.
For domestic carriers, Jet A-1 fuel prices have been cut by Tk17.43 per litre for domestic carriers – from Tk111 to Tk93.57 – and by $0.1434 for international airlines, from $0.7500 to $0.6066.
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A circular from the civil aviation and tourism ministry on 11 February mandated that all ticket bookings include the passenger's name, passport number, and a photocopy of the passport. Bookings not issued within three days must be automatically cancelled by airlines.
However, many foreign carriers – particularly budget and non-IATA airlines – are not complying, industry insiders say, keeping fares high on several routes.
According to the Association of Travel Agents of Bangladesh (Atab), the directive followed allegations against some general sales agents and travel agencies over ticket price manipulation.
Travel agents say airfares on some routes have recently dropped, but not as much as expected. They attribute the decline not only to new regulations but also to reduced demand, driven by a lower outflow of workers to Middle Eastern countries.
In April 2025, Bangladesh sent 49,983 workers abroad – the lowest monthly figure in 43 months – as recruitment in Saudi Arabia fell by over 64% from the previous month, according to the Bureau of Manpower, Employment and Training (BMET).
The suspension of Umrah visas during the Hajj flight season has further dampened demand for travel to Saudi Arabia.
Airfares to Middle Eastern destinations have fallen by around Tk10,000 since the new rules were introduced, but other factors are also at play, travel agent Mahmudul Haque Pearu told TBS.
On 25 May, a one-way Dhaka-Jeddah ticket for travel a month later showed a minimum fare of around Tk43,000 via budget carrier Jazeera Airways, while Biman charged Tk68,000 and US-Bangla Tk51,000, according to Flight Expert.
"The recent drop in jet fuel prices will soon be reflected in our ticket fares. We are also implementing the ticket booking requirements"
Airfares to most Middle Eastern countries, excluding Saudi Arabia, now range from Tk30,000 to Tk45,000, as many have restricted or halted visa issuance for Bangladeshi workers.
Meanwhile, fares to leisure destinations like Nepal, Sri Lanka, and the Maldives remain high due to strong demand and limited flights, amid visa restrictions or limited visa issuance in India, Vietnam, Cambodia, Indonesia, and Thailand.
Abdus Salam Aref, president of the Atab, told TBS, "Ticket prices to Saudi Arabia that once soared from Tk1,00,000 to as high as Tk1,90,000 in some cases are no longer at that level. This is due to government directives, reduced pressure on the labour market, and the suspension of Umrah visas."
He further said that anonymous bookings have declined since the government issued its directive.
"Around 60% of airlines are complying. Others are still making unnamed bookings and selling them to their preferred travel agents, who then resell the tickets on the black market," he said.
"If anonymous bookings aren't stopped, there could be a rush after Eid. With the possibility of the Malaysian labour market reopening soon, some are already trying to push up ticket prices again using this loophole," he added.
He emphasised the need to strengthen government monitoring and control, saying, "Government authorities must access the airlines' reservation systems to check how many bookings lack passenger names and how many include them."
Ahmed Yusuf Walid, the convener of Airlines GSA Forum of Bangladesh, said, "Board of Airlines Representatives of Bangladesh has officially written to the civil aviation ministry explaining the practical issues and limitations affecting the airlines due to the government instructions. Airlines are waiting for further consideration and feedback from the ministry."
ABM Rawshon Kabir, general manager of Biman Bangladesh Airlines, told TBS, "The recent drop in jet fuel prices will soon be reflected in our ticket fares. We are also implementing the ticket booking requirements."
Imran Asif, CEO, Air Astra said that they are preparing a strategy to accommodate fuel price cut with airfare as per the instructions of Caab.
