Iran's Airlines Association reports 40% rise in airfares due to currency shortages

Majid Akhlaghi: Majid Akhlaghi is the secretary of Iran's Airlines Association and a spokesperson on operating conditions affecting Iranian carriers. He is relevant to the report because he attributed the fare increase to foreign-currency exposure and the suspension of official currency allocations. Iran's Airlines Association: Iran's Airlines Association represents Iranian commercial carriers and communicates industry concerns to government authorities and the public. In this report, the association said airlines’ fares had risen because foreign-currency shortages were forcing carriers to obtain currency at costly open-market rates. • Majid Akhlaghi of Iran’s Airlines Association attributed the increase to higher operating costs and limited access to foreign currency. • Iranian airlines rely on foreign currency for aircraft parts, maintenance, insurance, pilot training, and airport services. • Sanctions have made parts more expensive and contributed to an aging, inefficient fleet with frequent repairs. • Industry sources say more than 50% of Iran’s aircraft are grounded because of spare-parts shortages. • The fare increase reflects broader rial weakness and inflation, which raise dollar-linked aviation costs. • Continued sanctions or further currency depreciation could sustain upward pressure on domestic airfares.