Skyrocketing fuel costs drive sharp decline in Nepali air travel
Summary
Soaring jet fuel costs have led Nepali domestic airlines to raise fares by up to 40 percent, resulting in a sharp 12 percent drop in passenger numbers, with significant impacts on major airports and carriers.
Key Points
- Nepali domestic airlines hiked airfares by up to 40 percent due to costly jet fuel driven by geopolitical tensions.
- Domestic passenger traffic dropped 12 percent in fiscal year 2025-26, losing over 540,000 passengers.
- Buddha Air suffered the largest loss with a 14 percent decline but retained market leadership.
- Financial strain threatens Nepalese carriers' solvency amid rising operational costs and currency depreciation.
