The government of Ecuador my handó totally subsidy aviation fuelón Jet A1 In DAC airports and delegates to municipalities.
After the return of subsidy in the AñO 2017 exclusive for airports administered by the DGAC and in those delegates to municipalities, But not concessioned, Ecuador Delete this benefit for airlineíNeas operating in these airports.
Are youí that from this 12 August is eliminated to Jet A1 for Manta Airports, Store, Santa Rosa, Coca and Cuenca, the úunique what doíAn use of this benefit at the time since they have regular commercial service.
Ecuador eliminates Jet A1 fuel subsidy
Víto presidential decree no. 83 of the 11 august 2025, The National Government has submitted modifications to the regulations CODIFICADO de regulationóN Hydrocarbon Derivative Price N, in which art is eliminatedíasses that allowíthe author AVIATION FUEL SUBSIDYón.
Change is following:
- Artíass único.- RefóRME THE CODED REGULATION REGULATIONóN Hydrocarbons derivatives prices according to the following:
- A).- ElimíNee the numerals 1.2.2, 1.2.3 and úlast paragraph of the numeral 1.2 of the artíass 1.
¿Whaté Change in the presidential decree?
Natural or juridical personsítips (aerolídenies) that operate inside and outside the Ecuadorian territory, that have aircraft built from AñO 1990, that have their operator certificate toécurrent inmate and provide transport service toéNational and international passenger prisoners and international loading from Ecuador, payán the sale price in terminal determined under the methodologíA by C.áLULCO ESTABLISHED IN THE NUMBER 1.2.1, minus the 40%, as long as they operate on routes that include airports under the administrationóIntegral N of the Directorateón General of AviationóN Civil and the Airports delegated to the Municipal Authority, that they have not been concessioned, Except for the route to the Gal Islandsápayments and supply by stops tétechniques.
The same way, natural or juridical personsíNational Dicas and Compañíforeign aces(aerolídenies) that provide the transport service toéInternational passenger inmate, Mail and load combined, that initiate operations to or from the Ecuadorian territory on international routes that include any of the PA airportsís, payán the sale price in terminal except the 40%, For a period of three (3) años, counted from the beginning of its operations, as long as they meet each of the following conditions:
a) Have aircraft built from AñO 1990;
b) Satisfy the requirements Téstage cynics 4;
c) Are the first to provide the transport service toéInternational passenger inmate, mail or load combined on one or several international routes prioritized by the Sector Council of the Productionón: and,
d) Dutyán operate on the authorized international route (direct without stops) At least three (3) flights per week (Ida-Vuelta).
A ningún Case the price in terminal without vAT of jet fuel to beá inferior a USD 1.25 by galón.
All this is eliminated, así there is no más Jet A1 fuel subsidy in Ecuador.
¿Affectá in aviationón Ecuadorian this measure?
In part, sí hornbeamá an affectationón, But on a medium scale, since not all airports were using these incentives, Let's take into account that the 40% It is an important value that was discounted in the value of Jet A1 and it is the cost más Alto that pays an airlineínea in its operational costs. Remember that today in DíThere are already complaints about ticket prices from Cuenca, imagínile qué marketá from today.
On the other hand, Remember that the tickets areán sold in advanceón with a subsidized jet price from Manta and Cuenca, This change a úlast minute and without notificationón prior to industry, triggerá An increase in airline operating costsídenies, which already charged value, But with a lower price, ¿Whoén assumes that additional value?
Thus, The flights of Copa Airlines couldíto see an increase in their rates from and from Manta International Airport from Panamá, ruta that isá reaching a daily flight (temporal) and caníTo show a brake on its growth on this route that until today shows a sóLido growth.
Spaghettién, We have flights to Cuenca, which are at this time the fate that más grows in Ecuador With demand, passengers and frequencies. They just even 8 daily flights that the Marshal La Mar hacíAn use of subsidized fuel for its flights to Quito and Guayaquil, But from this moment they have lost this benefit, what caná directly imply an impact on prices and therefore, a direct decline in flight demand.
Let's not forget that this benefit of the subsidy is also appliedén for routes to DGAC and municipal airports without concessión, This means that the routes from Quito to Loja, Santa Rosa and Coca alsoéI can't seeán affected by eliminationón of the incentive.
The idea is clear, subsidy is eliminated, Ticket prices upload toéinmates from/to Manta, Store, Coca, Santa Rosa and Cuenca, what to generateíto a reductionón of demand. Beé attentive to these possible changes in the behavior in the market that can be given in the PRóximos díAs and weeks.
¿Whaté Do you think this measure?
