Airlines agree to reduce ticket prices as fuel costs drop: Caab

Airlines operating in Bangladesh have agreed to reduce the price of tickets following a drop in jet fuel costs.

Speaking to representatives of airlines in a meeting today (15 May), Air Vice Marshal Md Monjur Kabir Bhuiyan, chairman of Civil Aviation Authority of Bangladesh (Caab), called on them to take effective measures to reduce passenger fares.

Airlines officials agreed to heed his call and assured taking on initiatives to this end soon, reads a Caab press statement.

The Bangladesh Energy Regulatory Commission (Berc) has reduced the jet fuel Jet A-1 price for domestic and international airlines, effective from Wednesday (14 May).

For domestic carriers, the price of Jet A-1 fuel has been lowered by Tk17.43 per litre — dropping from Tk111 to Tk93.57.

For international airlines, the price has been cut by $0.1434 per litre, reducing the rate from $0.7500 to $0.6066.

Aviation operators said around 40%-50% of the costs of airlines are related to jet fuel.

"The operational cost would reduce, consequently the operational losses would be lesser too. But sustainability of the industry would depend on much more than fuel – reduction of surcharges, ground handling costs, and dollar rates," said CEO of Air Astra Imran Asif told The Business Standard on Wednesday, commenting on the impact of the price cut.

Meanwhile, speaking at today's meeting, the Caab chairman said the activities of the much-awaited third terminal of Hazrat Shahjalal International Airport will officially begin by December 2025.

Air Vice Marshal Monjur said all construction work and service activities of the terminal will be conducted following international standards, so that domestic and foreign passengers can receive the highest quality and modern services.

He also stated that the process of converting Cox's Bazar Airport into an international airport as part of a coordinated plan by the government and the Caab is already in its final stages.

"The work of necessary infrastructure development and ensuring security, customs, immigration and other facilities as per international standards is progressing at a rapid pace," he said.

He expressed hope that international flights will start operating at Cox's Bazar Airport from the end of June or the beginning of July 2025.

The Caab chairman also stressed the need to increase the number of cargo flights from Osmani International Airport in Sylhet and Shah Amanat International Airport in Chattogram.

He said it is important to launch more cargo operations from these two important international airports to make the country's export trade more dynamic and effective.

He called on the airlines concerned and cargo operators to come forward for this purpose.