Dominican Republic among countries with highest air transport operating costs

Santo Domingo.- The high operating costs of air transportation in the Dominican Republic lead to increased ticket prices and reduced passenger connectivity options, negatively impacting the country’s competitiveness as a destination and regional hub.

According to the Latin American and Caribbean Air Transport Competitiveness Index, prepared by Amadeus and ALTA, the Dominican Republic ranks 17th out of 20 countries in the operating costs pillar.

This pillar considers three main components: fuel prices, overflight fees, and turnaround costs, which are the ground operating expenses between an aircraft’s arrival and departure (such as boarding, cleaning, and refueling).

In fuel prices, the country ranks 16th. Although specific taxes account for approximately 8.5% of the final price, other structural factors also contribute to the overall cost.

This is significant, considering that fuel accounts for, on average, 37.4% of an airline’s operating costs in the region. Regarding overflight fees, the Dominican Republic ranks 18th out of 20 countries, indicating an area with room for improvement. In contrast, it stands out positively in the turnaround component, where it occupies second place, reflecting efficiency in this type of operation.

Reducing operating costs would directly impact more attractive prices for passengers and increase the country’s competitiveness as a destination. This would create more favorable conditions for the development of air transport, benefiting users, tourism, trade, and investment.

A collaboration of the Regional Center for Sustainable Economic Strategies (CREES).