Caribbean tourism faces airfare pressure from rising oil and jet fuel costs
Updated
Updated · antigua.news · Apr 28
Caribbean tourism faces airfare pressure from rising oil and jet fuel costs
7 articles · Updated · antigua.news · Apr 28
Antigua and Barbuda, entering 2026 with record January arrivals, now faces higher travel costs as Strait of Hormuz disruption lifts crude prices and global jet fuel averages $179.46 a barrel.
The IMF says tourism-dependent Caribbean economies are especially exposed because debt is high and net energy imports average about 6% of GDP, while some Europe long-haul fares have already risen by more than $100.
The pressure comes as Antigua prepares to host Caribbean Travel Marketplace in May and pursue direct UAE flights in 2027, underscoring risks to airlift, household costs and wider economic resilience.
As the U.S.-Iran war bankrupts airlines, can Caribbean tourism pivot to a high-value model before it is too late?
With fuel subsidies straining budgets, are Caribbean nations trading short-term relief for long-term economic collapse?
How Soaring Jet Fuel Costs and Geopolitical Conflict Trigger Caribbean Airlines’ New Fuel Surcharge
Overview
In early 2026, geopolitical tensions between the US and Iran led to the closure of the Strait of Hormuz, causing global crude oil prices to surge sharply. This spike doubled jet fuel costs, forcing Caribbean Airlines to introduce a fuel surcharge of $15 to $25 per flight sector starting April 10, 2026. The surcharge affects most international and regional routes, excluding domestic flights within Trinidad & Tobago. Rising fuel costs have triggered inflation across the Caribbean, increasing expenses for electricity, transportation, and goods, while also straining tourism by deterring price-sensitive travelers and slowing economic growth. In response, Caribbean Airlines is cutting costs and the Caribbean Tourism Organization is pushing for a shift toward renewable energy and sustainable tourism to build long-term resilience.