AK Air Georgia says rapidly rising aviation fuel prices have erased its expected profits and pushed the company into a loss-making position over the past 1.5 months. The airline operates domestic flights under a fixed-price contract with the Georgian government, valid until June 30.
According to the company’s financial and administrative manager Irina Mgebrishvili, jet fuel prices have increased by nearly 189% compared to pre-war levels, rising from GEL 2.20 per liter in February to about GEL 4.15 currently, with further increases of 5–7% expected. This has significantly raised operating costs across the aviation sector.
She noted that fuel costs, which previously accounted for 8.5–9.5% of ticket prices, have now surged to around 17–20%, making operations considerably more expensive. As a result, the company’s planned profit for the past month and a half has dropped to zero, with operations continuing at a loss.
AK Air Georgia says it cannot revise prices under the current agreement, but if the contract is extended and fuel prices remain high, it will request a fare adjustment. The company added that it remains committed to stable operations and aims to expand flights once market conditions normalize.
