Aviation industry: Aviation business to recover by Eid this year

  • 28 Mar 2024

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Bisnis Indonesia - Industri penerbangan bisnis aviasi pulih lebaran tahun ini

28 March 2024

By Dwi Rachmawati and Lorenzo A. Mahardhika

Bisnis, Jakarta – Angkasa Pura Indonesia predicts that passenger movements at 35 of their airports during the 2024 Eid homecoming period will surpass 7.9 million passengers, higher than the 2019 Eid period.

Angkasa Pura Indonesia President Director stated that the forecast was derived from flights scheduled between 3 April and 18 April 2024. The peak of outbound travel is anticipated to happen on 5 April 2024, while the peak of return travel is expected on 14 April 2024.

“We forecast that, during the Eid period, 7.9 million passengers will be served at the 35 airports,” he said at InJourney’s press conference in Jakarta on Wednesday (27/3).

He mentioned that the projected number of passengers during this year's Eid period was already 3% higher than the passenger count during the Eid period in 2019, prior to the Covid-19 pandemic.

Compared to the Eid period last year, he forecasts that the number of passengers during the 2024 Eid transportation period will be higher by 10%.

“2024 is the year when [the aviation industry] will fully recover from the impacts of the Covid-19 pandemic,” he stated.

The highest number of passengers during the 2024 Eid period is predicted to be recorded at Soekarno-Hatta Airport, followed by I Gusti Ngurah Rai Airport in Bali, Juanda Airport in Surabaya, and Sultan Hasanuddin Airport in Makassar.

“Then, in Padang and Yogyakarta,” he mentioned.

To support passenger flow during the Eid period, Faik added that six airports would operate for 24 hours. The six airports are Soekarno-Hatta (CGK), Denpasar (DPS), Makassar (UPG), Manado (MDC), Medan (KNO), and Halim Perdana Kusuma (HLP).

According to him, the number of airports that operate for 24 hours has the potential to be increased. “However, regarding the airports that will not operate for 24 hours, we are still considering if they need to also operate for 24 hours. We will fully support [the decision],” he said.

Meanwhile, the Transportation Ministry has received around 2,350 extra flight requests for the 2024 Eid transportation period.

A spokesperson for the Transportation Ministry, Adita Irawati, said that the extra flight requests were submitted by eight airlines for domestic routes scheduled from 3 April to 18 April 2024.

“Almost all airlines have requested for extra flights for Eid in 2024,” Adita said.

With the increased frequency, she affirmed that passenger capacity also increased to 415,000 seats.

Adita said that the extra flights would be provided on homecoming and tourism routes.

However, she did not explain which routes would receive the extra flights.

Adita also noted that ticket prices have risen significantly, nearing the upper limit as we approach the 2024 Eid homecoming period.

Upper tariff limit

Airlines are currently setting ticket prices near the set upper tariff limit. According to her, this is conducted due to increased demand approaching the 2024 Eid homecoming period.

The extent of the tariff increase varies depending on the level of competition on each route. Adita mentioned that on busier routes, the tariff increase tended to approach the upper limit set by the Transportation Ministry.

“The prices of busier routes will also be higher. Airlines will observe each other’s prices on each route,” Adita explained.

Meanwhile, Statistics Indonesia Distribution and Services Statistics Deputy Pudji Ismartini mentioned that the surge in aircraft and bus ticket prices during the 2024 Eid transportation period could increase inflation in April 2024.

He mentioned that the transportation sector was the most vulnerable to inflation during Ramadan and Eid.

“Historically, since 2021, the tariff of air transportation, intercity transportation, railways, and ships has always increased,” Pudji said.

He explained that aircraft ticket prices always increased during Ramadan and Eid every year.

According to him, aircraft ticket prices inflated by 5.97% during the Eid period in April 2023. The same goes for the Eid period in 2022 in May when aircraft ticket prices inflated by 7.44%. “In February [2024], air transportation tickets inflated by 1.17%,” he stated.

Besides aircraft tickets, tickets for intercity transportation also needs to be observed. Pudji said that tickets for intercity transportation experienced the highest inflation during the 2023 Eid period with an increase of 12.36%.

“Intercity transportation also tends to inflate during Ramadan and Eid,” he explained.

Meanwhile, railway tariff inflated by 2.53% during the 2023 Eid period and 1.51% during the 2022 Eid period. However, sea transportation had a lower inflation last year at only 0.55%.

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