As Bangladesh enters its 56th year of independence, a single policy decision has pushed the aviation sector toward crisis. Here is why it concerns every Bangladeshi — traveller, worker,and policymaker alike.

Independence Day. And an Industry Still Fighting for Its Own.

Bangladesh marks 55 years of independence on March 26, 2026. It is a day of pride, of remembrance, and of reflection. But for those of us who work in the travel and aviation industry,it is also a day to ask a difficult question: why does an industry so vital to our economy, our diaspora, and our connectivity still feel like it is fighting for survival? I have spent 11 years in the travel industry. I have watched airlines enter Bangladesh with ambition, and leave quietly — crushed by costs, bureaucracy, and what operators themselves have described as an unfriendly government apparatus. Today, with a brand new Third Terminal almost ready at Hazrat Shahjalal International Airport, we find ourselves at arossroads. And the road we just took may have been the wrong one.

The Graveyard of Bangladesh's Private Airlines

Over the past 30 years, Bangladesh has seen 10 private airlines attempt to build a domestic aviation market. Today, only 2 remain operational. GMG Airlines. United Airways. Regent Airways. These are not just names — they represent thousands of jobs, billions in investment, and the hopes of an industry trying to stand on its own.

All gone. Primarily due to three compounding forces:

  • Prohibitively high operational costs
  • Jet fuel pricing that is among the most expensive in the region
  • A regulatory environment that industry operators describe as "unfriendly, if not outright hostile" to private carriers (AOAB, 2025)

The result? Foreign airlines now control approximately 75% of passenger traffic in Bangladesh. Local operators are left fighting for a shrinking 25% share — with every cost increase eating further into their margins.

The Hike That Shocked the Industry

On March 24, 2026, the Bangladesh Energy Regulatory Commission (BERC) announced an approximately 80% increase in jet fuel prices — the second hike this month alone. In just 16 days, fuel prices had risen by approximately 115%.

Here is what that looks like in numbers:

Tk 112.41 per litre Domestic jet fuel (before):

Tk 202.29 per litre Domestic jet fuel (after):

$0.7385 per litre International fuel (before):

$1.3216 per litre International fuel (after):

How does Bangladesh compare to its neighbours?

0% increase India:

0% increase Nepal:

+18.5% Maldives:

+24.5% Pakistan:

~80% Bangladesh:

BERC has cited the ongoing US-Israel-Iran conflict as a contributing factor in global crude oil volatility. But the scale of the hike — and its timing — has left the aviation industry reeling.

Every time aviation tries to breathe — something pushes it back under water — Shoaib Bin Noor

Why Fuel Prices Matter More Than You Think

Jet fuel is not just one of many costs for an airline. It is the cost. On most routes, fuel accounts for 40 to 50% of total operating expenses — before taxes, before navigation fees, before ground handling. When fuel doubles in 16 days, an airline's entire financial model collapses.

The VAT situation compounds this further. VAT on aviation fuel just jumped from Tk 150 to Tk 1,200 per flight — an 8x increase that further squeezes operators already operating on thin margins.

Now consider this global comparison for international jet fuel per litre:

$0.587 Dubai:

$0.584 Doha:

$0.586 Singapore:

$0.603 Muscat:

$1.3216 — Steepest in the region Bangladesh (post-hike):

Major international carriers already avoid refuelling in Dhaka because of historically higher prices. This hike makes Dhaka even less attractive as a refuelling hub — a devastating blow for a country trying to position itself as a regional aviation gateway.

The Third Terminal Question

Bangladesh has invested enormously in the new Third Terminal at Hazrat Shahjalal International Airport. It is a world-class facility, built to signal that Dhaka is ready to compete with the aviation hubs of Dubai, Doha, and Singapore.At least 15 international airlines had expressed interest in operating flights from Dhaka — British Airways, Air Canada, Air France, Swiss Air, Korean Air, Ethiopian Airlines, Garuda Indonesia, Royal Jordanian, and more.

With fuel at $1.32/litre in Dhaka vs $0.58 in Dubai — will they still come ?

The Third Terminal was Bangladesh's moment. A chance to finally compete on the global stage,to attract long-haul routes, to give our diaspora direct connections home, and to stimulate inbound tourism and trade. This single pricing decision puts all of that at risk.

A Decade of Shocks — And Aviation Survived Them All

It would be unfair not to acknowledge how resilient Bangladesh's aviation sector has been. This industry has survived:

  • COVID-19 (2020–2022) — Near-zero revenue, airlines grounded worldwide
  • Slow recovery (2022–2023) — Compounded by OTA scams that damaged traveller trust in Bangladesh
  • Russia-Ukraine War (2022–present) — Fuel volatility, route disruptions, and rising operational costs
  • The July Uprising (2024) — Operational chaos and political transition
  • US-Israel-Iran conflict (2025–2026) — Now cited as the reason for this very fuel hike

Through all of this, the industry kept flying. It absorbed losses. It restructured. It hoped. And now, as it attempts to recover, it faces a policy shock of its own government's making. Bangladesh's aviation sector has survived everything — except its own government's pricing decisions. This has to change.

Who Bears the Burden?

It is tempting to see aviation as a luxury — an industry serving business travellers and the middle class. But that framing misses a critical truth about Bangladesh.Our migrant workers — the men and women who travel to the Gulf, to Malaysia, to Southeast Asia — are the backbone of our remittance economy. Bangladesh received over $21 billion in remittances in the last fiscal year. These workers do not choose to fly. They have to. And they pay whatever the ticket costs, because their families depend on the income they send home. Every time fuel costs rise, ticket prices rise. And it is not the business traveller who feels it most — it is the garment worker flying to Riyadh, the construction worker heading to Doha, the nurse boarding a flight to Kuwait. They deserve better policy. They have earned it.

What Needs to Happen

This blog post is not a political statement. It is a call for rational, evidence-based aviation policy. Specifically, we urge policymakers to consider:

  • A fuel subsidy or price stabilisation mechanism for the aviation sector, similar to what regional competitors offer
  • A freeze on further fuel price hikes until the sector has time to adjust and recover
  • Transparent dialogue between BERC, CAAB, and airline operators before pricing decisions are made
  • A long-term aviation development strategy that aligns fuel pricing with the goal of making Bangladesh a competitive regional aviation hub
  • Protection of the Third Terminal's commercial viability by ensuring fuel prices do not deter international airline interest

Happy Independence Day, Bangladesh.

Fifty-five years ago, this nation fought for the right to control its own destiny. Today, we ask only that our policymakers exercise that control wisely — with an eye toward the industries that carry our people, connect our diaspora, and power our economy. Bangladesh's Third Terminal deserves airlines that want to land here — not a fuel bill that makes them think twice.

May we build a country where every sector — including aviation — can truly fly.