High fuel costs, global crisis pose challenges for aviation operations

KATHMANDU: Ongoing conflicts in the Gulf region are directly impacting Nepal’s tourism season, with foreign tourists canceling previously booked flights, posing fresh challenges for the tourism and aviation sectors.

In a press release today, Buddha Air highlighted that recent increases in aviation fuel prices are not only unprecedented but the highest recorded to date.

The airline confirmed that these automatic fuel cost hikes have directly affected ticket fares. Buddha Air emphasized that current fare adjustments strictly follow existing regulations.

Birendra Bahadur Basnet, Executive Chair of Buddha Air, stated that under such adverse conditions, the airline has had no choice but to implement minimal fare increases while maintaining operational restraint.

He noted that nearly 40% of total operating costs are spent on fuel, a figure that has now surged to approximately 50% due to the latest price hikes.

Additionally, the rising value of the US dollar has significantly increased costs for aircraft parts, maintenance, technical training, and other essential operations.

Buddha Air said that there is no immediate solution except to wait for fuel prices to stabilize, expressing confidence that Nepal’s tourism sector will regain strength once the situation normalizes.

Highlighting tourism’s key role in employment generation, the airline underscored the need for collaboration between the private sector and the government to promote and sustain the industry.

Despite these challenges, Buddha Air reaffirmed its commitment to supporting aviation services and the tourism sector under the newly elected government.