The annual tradition of mudik Lebaran (homecoming during Eid celebrations) is an eagerly anticipated event for Indonesians. During this period, millions of people embark on journeys back to their hometowns to celebrate the holiday with their families. However, one of the most pressing challenges for travelers each year is the soaring cost of airline tickets. This price surge has become a common grievance, not only burdening migrant workers but also raising questions about pricing regulations and the preparedness of Indonesia’s transportation infrastructure. The challenge has been exacerbated by waves of layoffs (Pemutusan Hubungan Kerja or PHK) across various industries, such as the recent layoffs at PT Sritex and other textile companies, further constraining consumers’ purchasing power.
This year, traveling by air has become even more challenging due to the absence of a state-owned airline. Previously, such a carrier maintained a balance between serving the public as part of its national duty and sustaining a business model. Now, only the latter remains. This shift is a logical consequence of a fully privatized business mechanism—after all, no private enterprise willingly operates at a loss. This is an entirely rational and pragmatic reality.
Factors Behind the High Cost of Airline Tickets
The surge in airline ticket prices during mudik Lebaran is influenced by multiple factors. Chief among them is the principle of supply and demand. During this peak season, passenger numbers skyrocket compared to regular periods. According to basic economic principles, when demand increases while seat availability remains fixed, prices naturally rise. Additionally, airlines strategically adjust fares, increasing them during peak seasons to compensate for discounts offered during off-peak periods.
Beyond demand-driven pricing, airline policies also play a critical role. Most airlines employ a dynamic pricing system, where ticket prices fluctuate based on seat availability and booking time. The closer one books to the departure date, the higher the fare. Thus, early booking is often recommended to secure more affordable prices.
External factors further contribute to the rising cost of airfare. Key among these is the fluctuating price of aviation fuel (avtur), which has experienced significant increases in recent years. Taxes and airport service fees also influence the final ticket price. Furthermore, recent controversies involving Indonesia’s state-owned oil company, Pertamina—rife with corruption and fuel supply mismanagement—have inevitably impacted overall transportation costs, including airfare.
A Comparison with the COVID-19 Pandemic Period
Comparing the current airfare situation to that of the COVID-19 pandemic period reveals stark differences. During the pandemic, ticket prices plummeted due to reduced demand, as travel restrictions curtailed passenger movement. Airlines were forced to scale down operations, with some routes suspended due to minimal occupancy. However, as restrictions eased, ticket prices soared due to limited flight availability and recovering demand.
Today, while the economy is gradually recovering, new challenges have emerged—most notably, widespread layoffs. If during the pandemic many were unable to travel due to mobility restrictions, now many struggle to afford airfare due to exorbitant prices. Both scenarios underscore how external factors profoundly impact access to air travel for the public.
The Impact of Rising Airfare on Travelers
The high cost of airline tickets significantly affects travelers, particularly those reliant on air transport as their primary means of returning home. Migrant workers residing on different islands, for instance, face difficult choices between depleting their savings to purchase airfare or opting for alternative modes of transportation that are more time-consuming and physically demanding.
Beyond individual burdens, the economic ripple effects are considerable. Consumers allocating a larger portion of their budget to airfare are likely to cut back on spending in other areas, such as gifts, accommodation, and tourism-related activities. This could negatively impact local economies, which typically experience a surge in economic activity during the homecoming season.
The burden is especially acute for those recently laid off, such as textile industry workers affected by the closure of factories like PT Sritex. For these individuals, purchasing airline tickets has become increasingly difficult, forcing many to seek more affordable transportation alternatives. This situation highlights how rising airfare prices are not merely an individual concern but also a broader issue affecting household economic stability.
Alternatives and Mitigation Strategies to Address Rising Airfare Costs
To navigate the surge in airfare prices, travelers must adopt strategic planning to minimize costs. One viable approach is booking tickets well in advance. By planning their journeys ahead of time, travelers can secure lower fares compared to last-minute bookings.
Another alternative is choosing more economical modes of transport, such as trains, buses, or ferries. Although these options involve longer travel durations compared to flying, they offer significant cost savings, particularly for families traveling together. The government has also enhanced land and sea transportation services to accommodate the influx of homecoming travelers, including deploying additional buses and ferry fleets.
The Indonesian Ministry of Transportation has a crucial role to play in regulating ticket prices to ensure they remain within reasonable limits. Strict enforcement of upper and lower fare limits is necessary to protect consumers from excessive price hikes. Additionally, the government could provide subsidies or incentives to airlines to help offset operational costs, thereby mitigating steep fare increases.
Technology also presents a valuable tool in assisting travelers in securing the best ticket prices. Modern booking applications now feature price-tracking and notification systems, enabling users to monitor fare fluctuations and receive alerts when prices drop. By leveraging these technological advancements, travelers can make more informed purchasing decisions.
Conclusion
The mudik Lebaran tradition remains a deeply ingrained cultural practice for Indonesians, yet the escalating cost of air travel presents significant challenges. Various factors, including supply and demand dynamics, airline pricing strategies, fuel price fluctuations, and economic hardships due to layoffs, have contributed to this predicament. As airfare continues to rise, travelers must adopt smart planning strategies, while the government must ensure fair regulations to balance consumer protection and business viability. Ultimately, ensuring affordable access to air travel is not just a matter of economic policy but also of social and cultural significance.
Jakarta, March 9, 2025
Chappy Hakim – Indonesia Center for Air Power Studies.
