NASSAU, BAHAMAS— Bahamasair Managing Director Tracy Cooper has revealed that the national flag carrier experienced a staggering 91 percent year-over-year increase in its fuel bill in May, warning that rising operating costs, coupled with existing and proposed aviation fees, are placing mounting pressure on airlines to increase ticket prices while threatening the affordability of travel to the Family Islands.
Speaking during an aviation panel discussion at the 20th Annual Exuma Business Outlook conference on Thursday, Cooper said the airline has been forced to pass some of its escalating fuel expenses on to passengers through a fuel surcharge, as it struggles to balance operational sustainability with affordable air transportation.
“When we did our analysis of what we paid in fuel bill in May of last year and what we paid in fuel bill in May of this year, there was a 91 percent increase,” Cooper said.
“There was a 91 percent increase in fuel bill year over year, and throughout the months it went down a little bit in the summer, and now it’s going back up.”
Cooper acknowledged that the airline has little choice but to recover some of those additional expenses from passengers.
“Unfortunately, I have to pass that on to the consumer, or else we wouldn’t be flying too much,” he said.
He explained that Bahamasair has sought to avoid incorporating the additional fuel expenses directly into its base fares, instead introducing a separate fuel surcharge that can be adjusted as market conditions change.
Cooper noted that the airline is attempting to maintain round-trip fares between Exuma and Fort Lauderdale below $400, although rising operating costs continue to make that objective increasingly challenging.
“That $400 ceiling is where we try not to exceed, if we possibly could, but at the end of the day, you know, it’s a business,” he said.
The Bahamasair executive explained that fuel price increases extend beyond the airline’s direct fuel purchases, driving up expenses throughout the aviation supply chain, including aircraft parts, transportation and other essential services.
“Fuel drives the world, and when the fuel price goes up, then you have inflation from practically straight across the board,” Cooper said.
He noted that airlines typically contend with annual inflation of approximately three to four percent, but said recent geopolitical developments have contributed to significantly higher operating expenses.
Cooper also highlighted the significant portion of airline ticket prices attributable to government taxes and other charges.
According to the Bahamasair managing director, approximately 13 taxes and fees are embedded in tickets between Nassau and destinations such as Miami, Fort Lauderdale and Orlando, collectively amounting to approximately $171.
He explained that on a ticket costing approximately $370, Bahamasair receives only about $199 to $200, with the remainder representing taxes and associated charges.
“It’s a little better when you’re going from Georgetown to Fort Lauderdale. I think it’s around $96 or so,” Cooper said, referring to the taxes and fees.
He added that domestic flights between New Providence and the Family Islands carry approximately $76 to $77 in taxes and fees.
Cooper stressed that the airline must remain conscious of the broader competition facing The Bahamas as an international tourism destination.
He explained that visitors considering travel to The Bahamas are also weighing the cost of alternative destinations, including the Dominican Republic, Cancun and Las Vegas.
“The consumer, particularly out of Florida, which is our number one gateway as far as tourism product, has choices,” Cooper said.
He added that those decisions are influenced not only by airfare but also by accommodation costs and the overall value of the visitor experience.
Cooper acknowledged that balancing affordability with operational sustainability remains one of the airline’s greatest challenges, particularly given its responsibility to maintain connections to smaller Family Island communities where passenger volumes may be insufficient to make individual flights commercially viable.
He said the airline must continually assess its fares to avoid absorbing expenses that could threaten its operations, while remaining mindful of the economic and social importance of domestic air transportation.
Meanwhile, Sarah Swainson, Director of Business Development at Makers Air raised similar concerns about the cumulative impact of aviation charges, warning that additional fees could significantly increase the cost of travel to smaller Family Island destinations and potentially discourage visitors.
Swanson explained that smaller airlines face particular challenges because operating expenses must be distributed among significantly fewer passengers.
Unlike larger commercial carriers, Makers Air operates nine-seat Caravan aircraft, with the company using an average of six passengers when calculating the potential impact of additional fees.
She presented an example of a round-trip flight between Fort Lauderdale Executive Airport and Staniel Cay, with a base fare of $542.65 and taxes approaching $300.
Swanson explained that additional aviation charges, including a proposed $775 fee discussed during the panel, could push the cost of a round-trip ticket to approximately $1,000 per passenger.
“Unlike Bahamasair or some of the legacy carriers, these fees are not divided by 150 people. They’re divided by nine, or divided by six, is what we use in our math,” she said.
She noted that the cost of two round-trip tickets could climb from approximately $1,600 to nearly $2,000, placing additional pressure on families considering vacations in the Exumas.
Swanson warned that higher airfares could have wider economic consequences if visitors respond by reducing the length of their stays, travelling less frequently or choosing alternative destinations.
“Maybe they’ll only come on vacation once a year. Maybe they will shorten the number of days that they stay, which trickles down dramatically into the economy,” she said.
She also expressed concern about uncertainty surrounding proposed aviation charges and retroactive billing, arguing that airlines need greater consultation and predictability to effectively manage their operations.
“Before we can responsibly tell people what these fee increases may be, we need to have clear communication, which we have not had necessarily,” Swanson said.
She explained that retroactive fees present a particular challenge because airlines may already have sold tickets without accounting for the additional expenses.
“The problem with that is that we’ve already charged the passenger. So now, if we’re paying large retroactive fees, and they’re not fees that we can plan for, then it really puts us in a compromising position,” she said.
Swanson acknowledged that airport improvements require substantial investment but maintained that airlines should not be expected to shoulder the entire financial burden.
“We need a seat at the table. We need to be able to have meaningful conversations, and more than anything, we need to be able to plan,” she said.
She stressed that policymakers must consider the broader economic consequences of increasing air transportation costs, particularly for smaller communities heavily dependent on visitor arrivals.
“What happens when people are just not coming? If fewer people are arriving into these islands, what does that mean for the average Bahamian family and worker?” Swanson asked.
Addressing the concerns, Carlos Schultz, Executive Director of Airport Plenary Works, revealed that discussions are underway with the government over potential adjustments to the company’s management agreement that could provide relief to airlines facing additional airport charges.
Schultz explained that approximately $100 million has been invested across the three airports under the company’s management, with increases in terminal fees previously scheduled for this year deferred until the new facilities become operational next year.
“We have not raised any terminal fees yet. We were supposed to this year, but we delayed that so they were more in line with the terminals coming online next year,” Schultz said.
He explained that current charges range from approximately $40 to $80 per commercial aircraft, rather than per passenger, and that adjustments to terminal and landing fees have been scheduled for next year.
Schultz acknowledged that the proposed adjustments have generated concerns among carriers, particularly because several aviation-related charges could take effect within a similar period.
“We have started conversations with the government because, you know, we have a contract, a management agreement with the Government of The Bahamas,” he said.
He added that the company is exploring whether adjustments to that agreement could result in relief for airlines.
“We are practically working with them to see if there are adjustments that we can do with our agreement that would result in fee relief for the carriers,” Schultz said.
While declining to disclose details of the ongoing negotiations, he expressed optimism that an arrangement could be reached that supports both airlines and the continued development of airport infrastructure.
Schultz also provided an update on the redevelopment of Exuma’s main airport terminal, confirming that the project remains on schedule for completion in late summer 2027.
He said work is progressing on the terminal’s exterior and interior, with windows, equipment and finishing work expected to advance over the coming months.
The new facility is expected to provide expanded passenger capacity and additional commercial opportunities, including approximately 14 concession spaces for retail, food and beverage, restaurants and other businesses.
Schultz said a request for proposals for those concession opportunities is expected to be issued within the next one to two weeks.