Due to the rise in global fuel prices caused by the war initiated by the United States and Israel against Iran, the Maldives' national airline, Maldivian, has increased the prices of tickets sold to tourists.
It is understood that Maldivian has added USD 33 (MVR 510.18) to the price of tickets sold to tourists for Malé-Addu and Malé-Fuvahmulah trips.
A senior official from Island Aviation, which operates Maldivian, told Mihaaru News tonight that the price of tickets sold to foreigners was increased because MACL has been raising the price at which jet fuel is sold at Velana International Airport.
The price of jet fuel in the Maldives has now been increased from USD 1.19 to USD 1.99.
"A price increase of 67 percent has come within a short period of time," the official said.
The tremors of the war started by the U.S. against Iran are being felt most significantly in the global oil market. In response to the aggression initiated by the U.S. and Israel against Iran, Iran has almost completely closed the Strait of Hormuz, through which five percent of the world's oil supply flows.
As a result, global oil prices have risen to record levels, causing a negative impact on the world economy.
Aviation is among the industries most severely affected by the negative impacts of this prolonged war. In addition to the rise in fuel prices, the closure of airspace in many Middle Eastern countries has caused extreme disruptions to flights, adversely affecting the business of airlines.
Since the war began on February 28, the price of fuel used for aircraft (jet fuel) in the U.S. has also risen by 95 percent. The price of a gallon of jet fuel, which stood at USD 2.50 a day before the war began, rose to USD 4.88 by last Thursday.
Looking at the price per barrel of jet fuel, a barrel that stood at approximately USD 96 during February has now crossed USD 200.
When looking at the operating costs of airlines, excluding employee expenses, the largest expenditure must be made on fuel. Between 20-30 percent of an airline's operating costs are spent on fuel.
The cost required to fully refuel a Boeing 737-800 aircraft used for domestic travel increased by USD 10,000 during the last month.
With the rise in fuel prices and operating costs increasing manifold, all the world's airlines are now forced to take strict measures to reduce expenses and make ends meet.
As a cost-cutting measure, many airlines have now reduced flights and brought changes to some routes as well.
In addition to reducing flights and changing routes, airlines have also been forced to increase ticket prices to cover the costs that have increased many times over.
The prices of international travel tickets rose by 24 percent during the past year. Ticket prices have risen because airlines have included the changes in fuel prices in the amount they charge for fuel surcharges.
Looking at the changes airlines brought to ticket prices on average, the price of tickets for travel to nearby destinations (short-haul flights) has risen by an amount between USD 5-10. Medium-haul ticket prices increased by USD 20-40.
The impact of international airlines increasing ticket prices is also being felt on trips made to the Maldives.
The price of a ticket sold for between USD 600-800 to travel between Malé and London has now been increased to an amount between USD 1,200 and USD 1,500. The price of a Malé-Frankfurt ticket, which stood at USD 800 before the war, has now risen to as high as USD 1,400. Ticket prices for Malaysia, India, and Thailand, where Maldivians travel most frequently, have also increased by an amount between USD 100 and USD 150.
The decision to suspend the war being waged in the Middle East for the next two weeks and the decision to open the Strait of Hormuz has already started to have a positive impact on the oil market.
However, even if the war ends permanently, economic experts have estimated that it will take at least six months for the world economy to fully stabilize along with the oil market.
