By Vijian Paramasivam
PHNOM PENH, April 3 (Bernama) -- Regional travel costs are flaring up as airlines increase ticket prices to cope with surging jet fuel costs, just as millions in the Mekong belt prepare for major New Year celebrations soon.
Travel plans may be disrupted for people in Cambodia, Laos, Myanmar and Thailand, who will usher in their New Year from April 13 to14.
The State Secretariat of Civil Aviation of Cambodia (SSCA) said in a statement that 18 out of 36 airlines -both international and domestic carriers operating flights to and from the Kingdom — have raised their ticket prices.
The price increase comes as jet fuel prices have increased sharply since the United States-Israel attack on Iran on Feb 28.
“The price increase is mainly driven by fuel costs and airline surcharges. Rise in ticket prices is from about 10 to 20 per cent typical range. No direct operational disruption of airspace, airports and flights remain normal,” Secretary of State and spokesperson for SSCA Sinn Chanserey Vutha told Bernama.
According to the International Air Transport Association’s (IATA) Jet Fuel Price Monitor’s website, the global average jet fuel price was trading at US$195.19 (RM787.40 per barrel as of March 27.
This compares with US$99.40 (RM400.98) per barrel on the eve of the West Asian conflict - a surge of nearly 96 per cent that could significantly impact airlines’ profitability.
Global energy disruptions such as the West Asia turmoil that has lead to a supply crunch, could easily bump up the operational costs of airlines.
The biggest expenses for airline operators are the fuel cost, accounting for about 20 to 40 per cent of airlines' operating costs, say industry experts.
Regional airlines are desperately restructuring their operational routes, cancelling unprofitable flights and adopting cost-cutting measures to cope with the unexpected fuel price fluctuations.
Lao National Carrier’s surcharge rose to about US$9.3 (RM37.52) to US$21(RM84.71) per ticket for domestic routes and between US$40 (RM161.36) and US$60 (RM242) for international destinations.
In Hanoi, the Civil Aviation Authority of Vietnam reported that over 60 per cent of 40 international airlines have raised fares since mid-March to cope with rising jet fuel costs.
Flag carrier Vietnam Airlines has announced a temporary suspension of several domestic flights starting in April due to a jet-fuel shortage, which could affect 23 weekly flights, according to local media reports.
Myanmar Airways International and Myanmar National Airlines announced measures last month, including hiking ticket prices for selected sectors, suspending domestic routes and reducing baggage allowances, according to the Mizzima news portal.
“The rising cost of air tickets, driven largely by the global energy situation, will have a direct impact on regional connectivity, particularly for short-haul and price-sensitive markets in Southeast Asia.
“During major New Year periods in the region, movement is typically driven by both tourism and family visits. However, higher airfares are likely to reduce spontaneous travel, shift demand towards land transport and closer destinations, shorten travel duration or reduce frequency of trips and impact lower and middle-income travellers the most,” Pacific Asia Travel Association Cambodia Chapter Chairman Thourn Sinan told Bernama.
IATA has earlier cautioned that jet fuel supply security is under threat as the West Asia turmoil has disrupted global energy flows, especially after oil tankers were unable to cross the Strait of Hormuz due to safety reasons.
SSCA spokesperson Vutha said Cambodia remains resilient, supported by strong regional connectivity and stable operations, although long-haul leisure demand may experience short-term pressure.
He added: “The impact on Cambodia is manageable and short-term, with only limited softening of demand, mainly on long-haul travel. The current price increase will have a moderate and uneven impact across the aviation and tourism sectors.”
-- BERNAMA
