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Antigua Tax Hike Sparks IATA Ire
24 Sep
Summary
- Passenger tax increased by US$10 for international travellers.
- IATA warns of negative impact on traffic and connectivity.
- Revenue allocation details remain unclear to stakeholders.
The International Air Transport Association (IATA) is calling for clarity from the Antigua & Barbuda government regarding a proposed US$10 increase in the Passenger Head Tax for international travelers. This would raise the tax from US$40 to US$50 per passenger, though travel within CARICOM will be exempt.
IATA expresses concern that this measure could harm Antigua & Barbuda's passenger traffic, air connectivity, and regional competitiveness. Data indicates a 2.6% decrease in passenger traffic during the first half of 2026 compared to the same period in 2025. The association also seeks transparency on how the additional revenue will be used, as details have not been fully disclosed to stakeholders.
IATA's Regional Vice President for the Americas, Peter Cerda, cautioned that implementing national measures before a regional framework is decided risks undermining coordinated regional aviation funding efforts. He advocates for separating national passenger charge increases from regional initiatives like those for the Eastern Caribbean Civil Aviation Authority (ECCAA).
Past experiences, such as Lima's Jorge Chávez International Airport implementing a US$11.86 transfer fee in December 2025, highlight the potential negative consequences of such charges. This fee reportedly led to a significant loss of passengers, impacting projected growth. LATAM CEO Roberto Alvo also noted that connection fees in hubs like Lima have hampered the development of Caribbean routes from South America, citing a sharp decrease in traffic due to approximately US$25 in round-trip connection fees.
