The International Air Transport Association (IATA), which represents more than 370 airlines covering 85% of global air traffic, has raised urgent concerns over a planned $10 increase in passenger service charges by the government of Antigua and Barbuda, warning the change could erode the Caribbean nation’s air connectivity and competitive position in the global tourism market.
Under the current proposal, every international passenger—including local residents—would face a $50 charge on both arrival and departure. For a round-trip journey, this adds an extra $20 to total travel costs, a significant increase that comes at a delicate moment for Antigua and Barbuda’s aviation sector. Data from the first half of 2026 already shows a 2.6% drop in passenger volumes compared to the same period in 2025, a decline that IATA argues could deepen if travel costs rise further.
While airlines operating in the region have repeatedly stated they support sustainable funding for core aviation priorities—from safety oversight to planned infrastructure upgrades at V.C. Bird International Airport and Barbuda International Airport—industry stakeholders say they have been denied critical details about the proposal. To date, there has been no public clarification on how the size of the proposed increase was calculated, what total revenue the government expects to raise, or how the new funds will be allocated across airport development, day-to-day operations, and civil aviation safety oversight.
The timing of the national charge hike is also particularly problematic, IATA notes, because the Organization of Eastern Caribbean States (OECS) member states are currently negotiating a region-wide harmonized funding framework for the Eastern Caribbean Civil Aviation Authority (ECCAA). The ECCAA is the regional body responsible for aviation safety oversight across most of the Eastern Caribbean, and earlier in 2026, participating OECS prime ministers agreed to develop a coordinated, cross-border framework that includes shared legislation, aligned implementation timelines, and a sustainable, collective funding model. The draft framework currently under discussion proposes a $2.50 charge on both arrival and departure for travel across participating states, far lower than the national increase proposed by Antigua and Barbuda.
Antigua and Barbuda’s government has stated that a portion of the new revenue from its charge increase will go toward ECCAA funding, but stakeholders have yet to receive clear details on how the full proposed increase was determined or how funds will be split between national projects and regional ECCAA obligations. IATA warns that moving forward with a unilateral national charge before the regional framework is finalized and publicly debated risks undermining months of work to build a coordinated regional approach to aviation funding that works for all OECS members.
As a leading tourism destination competing for international visitors, foreign investment, and new air services, Antigua and Barbuda’s competitiveness depends heavily on affordable travel, IATA emphasizes. Any increase to passenger travel costs must therefore undergo rigorous impact assessment to understand how it will affect destination affordability, tourist demand, long-term connectivity, and sustained economic growth from aviation.
“It is essential that the government clearly explains the rationale for the proposed increase and how the additional revenues will be used,” said Peter Cerda, IATA’s Regional Vice President for the Americas. “Any contribution toward ECCAA funding should be advanced through the agreed regional framework, supported by transparent governance and funding mechanisms that ensure revenues collected for aviation safety oversight are dedicated to that purpose and transferred accordingly. This would also facilitate informed stakeholder consultation and maintain confidence in efforts to support aviation development and oversight across the region. Separating the regional ECCAA initiative from proposals for national passenger charge increases would allow each measure to be considered independently and assessed on its own merits.”