Airlines have recently voiced concerns about their future operations, underscoring their most serious problems in a letter to President Hassan Rouhani.
Just like other economic sectors in Iran, the aviation industry, particularly airlines, have experienced problems with the depreciation of national currency. The Iranian rial has lost 67% of its value against the US dollar in the open market since January 2018.
The surge in plane ticket prices started earlier this month when the government announced it would stop supplying foreign currency at the subsidized rate of 42,000 to airlines and that the companies have to obtain their needed foreign currency at rates set in the Forex Deals Integrated System (known by its local acronym Nima). This rate is closer to open market rates.
September 03, 2018 18:44
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Iranian Airlines Anxious About Rising Costs, Dwindling Business
Iranian airlines’ ticket prices have reportedly increased by 70-100%, which has led to a significant drop in demand for air travel
According to the letter, airlines are obliged to pay fees to airports, even those for domestic flights, in dollars, while the services they provide and the revenues they make are in rials
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