Kathmandu, July 22 -- Costly jet fuel in Nepal has forced domestic carriers to hike airfares by up to 40 percent, causing passenger numbers to plunge.

Escalating geopolitical tensions-driven by joint US and Israeli military operations in Iran-have sent global aviation fuel prices skyrocketing.

According to data compiled by domestic airlines and Civil Aviation Authority of Nepal (CAAN), the number of domestic passengers plunged by over 540,000 in the fiscal year 2025-26, which ended on July 16, mainly due to fuel price hike.

The data shows that total internal passenger traffic dropped 12 percent compared to the fiscal year 2024-25. Numbers fell from 4,557,634 passengers in the 2024-25 fiscal year to 4,016,880 in 2025-26-a net loss of 54...