Nepal's 'Dollar Fare' in 2026: Why Trekkers Pay Up to Triple to Fly Lukla, Pokhara & Jomsom

If you are flying into the mountains this autumn — a short hop to Lukla for Everest Base Camp, or over the Annapurnas to Jomsom for Mustang — you will meet one of Nepal's most argued-about travel rules right at the check-in desk. It is the "dollar fare": a two-tier system where foreign passengers are quoted domestic flights in US dollars, while Nepali citizens pay a much lower rupee fare on the very same aircraft. Nepal Airlines introduced it back in the 1970s, and today it is still the single biggest reason a 30-minute flight can cost a visitor more than a return international ticket to Delhi.

The topic is live again because reform was promised and then quietly shelved. In April, Tourism Minister Khadak Raj Paudel committed to phasing out the dollar fare, beginning with flights to Karnali and Sudurpaschim — the western provinces that hold Rara Lake, Shey Phoksundo and Khaptad National Park, all magnificent and all under-visited precisely because the airfare is punishing. Bhakta Singh Bohara, chair of Api Himal Rural Municipality, put it bluntly to the Kathmandu Post: a return foreign ticket to Sudurpaschim can top Rs 60,000. "Why would someone pay Rs 60,000 just for a flight when they could spend a whole week elsewhere for the same amount?" he asked, calling it "a discriminatory policy that exists only in Nepal."

Here is how the gap looks on official examples where both fares are published side by side:

For trekkers specifically, the routes that matter most are the mountain airstrips. Fares move with season and fuel — Nepal last revised the fare schedule on 1 May 2026 after the Middle East fuel surge — but as a foreign passenger in 2026 you should budget roughly the following one-way:

So why has the promised reform gone quiet? Money — and cross-subsidy. Airlines argue that the dollar fare props up the whole domestic network: it is around a quarter of their revenue, and it lets them keep local rupee fares artificially low. Buddha Air's executive chairman has warned that abolishing it could push domestic ticket prices for Nepalis up by as much as 50%; other operators put the hit to their revenue above 30%, and estimate the country could lose about $75 million a year in foreign exchange. With fuel prices already spiking after the Iran–US conflict, the ministry told reporters on 15 July there are no ongoing discussions on removing the fare. In short: for the 2026 season, the dollar fare stays.

What this means for trekkers

The practical upside: because our trips quote flights transparently in the package, you are not gambling on airport-counter surprises. A good operator will also tell you honestly when a flight is worth it and when the drive wins — for Jomsom and Muktinath, for instance, the road is now viable, while for Lukla flying is effectively the only sensible option.

Next steps: If flight cost is shaping your plans, compare a fly-in Everest route against a drive-and-fly Mustang trip. See the full inclusions on our 14-day Everest Base Camp trek and the flight-served Jomsom–Muktinath trek, or message us and we'll price your exact dates with current fares built in.

Sources: South China Morning Post, "Why scrapping Nepal's 'dollar fare' could leave locals grounded" (15 July 2026); The Kathmandu Post — "Nepal's two-tier airfares: Are they fair?" and "'Dollar fare' is why foreign tourists avoid Karnali and Sudurpashchim" (April 2026); operator fare schedules (2026).

Cover photo: Jungsik Kwak via Pexels (Pexels License).