Airlines to raise fuel surcharges on int’l routes in August
SEOUL-- South Korean airlines will raise fuel surcharges on international routes next month amid rising jet fuel prices, industry sources said Friday.
Starting Aug. 1, the surcharge for one-way tickets on international routes will range from 6,000 won (US$5.30) to 54,000 won, depending on the routes, according to the sources.
The rate is up from a range of 4,800 won to 36,000 won for this month.
Rising jet fuel prices prompted local air carriers to begin imposing fuel surcharges in April after a one-year hiatus. Fuel surcharges on international routes had stayed at zero since April last year due to low oil prices sparked by the COVID-19 pandemic.
Local carriers' surcharges depend on the level of jet fuel prices traded on the Singaporean market.
If the average jet fuel price on the Singapore spot market rises over $1.50 per gallon during the past month, South Korean airlines are allowed to impose fuel surcharges starting one month later.
If jet fuel prices drop below the threshold, no surcharge is collected. There are 10 levels of surcharges, depending on the length of the route.
According to the International Air Transport Association, jet fuel prices closed at $1.90 per gallon on July 9, jumping 76 percent from a year earlier and up 3.8 percent from a month earlier.
Meanwhile, local airlines' fuel surcharges on domestic routes will also rise to 4,400 won next month from 3,300 won a month ago. Airlines started to levy fuel surcharges on domestic routes in April, ending their no-surcharge policy that began in May last year.
Source: Yonhap News Agency