Iran: Airfares Skyrocket in Wake of Forex Crisis
Iran: Airfares Skyrocket in Wake of Forex Crisis
Tuesday, August 14, 2018

Iran: Airfares Skyrocket in Wake of Forex Crisis

The new state of things will undo the gains made by the aviation industry in the past three years and trigger a drastic decline in air travels, particularly those on international routes
The decline in the purchasing power of Iranian tourists due to the depreciation of the rial and inflation will practically cripple tourism
Tuesday, August 14, 2018

Iran: Airfares Skyrocket in Wake of Forex Crisis

Business & Markets Desk

The Civil Aviation Organization of Iran issued a directive on Thursday, saying that the foreign currency needed by airlines to finance their ongoing operations would be determined at the rates set by the Central Bank of Iran’s Sana system, as the government would no longer supply forex at subsidized rates. 
Sana rates are the average of exchange rates at which foreign currencies are traded at bureaux de change on any given day. 
Fees paid to airports and  maintenance costs that should be paid in foreign currency take a huge chunk out of airlines' expenditure budget. Without subsidized foreign currency, such expenses would weigh down airlines’ bottom line, leaving them with no options but to increase ticket prices. And they did raise the fares, and fast.


Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Short URL : https://goo.gl/C8QDeT
  1. https://goo.gl/jNCh2u
  • https://goo.gl/wt15nz
  • https://goo.gl/s9eQTu
  • https://goo.gl/xTw4Lj
  • https://goo.gl/39GtW5

You can also read ...

Yu Chang Hwang (L) and Mohammad Reza Bakhtiari
South Korea’s new ambassador to Iran, Yu Chang Hwang, said...
Without Waivers, US Sanctions on Iran Will Cripple Iraq
Iraqi officials, struggling to form a new government months...
Iran-EU Trade Tops €12b
Trade between Iran and the 28 member states of the European...
Watermelon Exports  Exceed $100m
Iran exported 569,974 tons of watermelon worth $106.42 million...
Tehran to Host ‘IINEX 2018’  in October
The 18th International Industry Exhibition, also known as...
Trade With Indonesia Rises 32%
Iran traded 839,348 tons of non-oil commodities worth $355.73...
Seven Deputy Industries Ministers Resign
Seven deputy industries, mining and trade ministers have...

Add new comment