Maldives Slashes Domestic Airfares for Foreign Tourists on National Carrier

The government has officially approved a reduction in domestic airfares charged to foreign tourists on the national airline, Maldivian, rolling back previous price increases triggered by volatile global energy markets.

According to a statement issued by the President’s Office, the decision was finalised during a Cabinet meeting chaired by the President on Sunday. The measure is intended to ease travel costs for international visitors navigating the island nation’s dispersed atolls and to boost overall tourism competitiveness.

The national carrier, operated by state-owned Island Aviation Services Limited, had previously raised ticket prices for foreign visitors in April. At the time, the airline introduced a USD 33 surcharge (MVR 510.18) on key domestic routes, including long-haul flights connecting the capital, Male’, with southern hubs such as Addu and Fuvahmulah.

Explaining the earlier hike, a senior official from Island Aviation told local media that the company was forced to adjust tourist fares due to a rapid escalation in fuel prices at Velana International Airport. Jet fuel prices at the country's primary gateway spiked from USD 1.19 to USD 1.99 per liter—a 67 percent increase within a remarkably short window.

The sharp rise in jet fuel prices reflected broader shocks in the global crude market, driven by the Middle Eastern conflict and severe disruptions near the Strait of Hormuz, a critical transit route for roughly five percent of the world's petroleum supply. The resulting spike in operating costs heavily impacted aviation sectors worldwide, prompting Maldivian to offset expenses through targeted fare increases on non-resident passengers.

Historically, the Maldives has maintained a tiered pricing model for domestic air transport, charging international tourists higher rates than Maldivian citizens. While the new Cabinet decision lowers the overall cost for overseas visitors, the government’s policy of maintaining preferential rates for locals remains intact, ensuring affordable transport for residents while recalibrating tourist fares to align with stabilising market conditions.