SEOUL: Korean Air is planning to impose record fuel surcharges on international routes in July due to rising jet fuel prices.
Starting July 1, the South Korean flag airline will levy a 42,900 won (USD 33) to 339,300 won fee on one-way overseas tickets, depending on the location. The projected hike will raise the airline’s surcharges from Level 19 to Level 22, the highest tier. It’s the highest level since July 2016, when the current fee scheme was implemented, the report read.
After a one-year respite, soaring jet fuel prices led local carriers to reintroduce fuel fees in April 2021. Due to the fallout from the coronavirus epidemic, fuel surcharges for international routes have been nil since April 2020.
The level of fuel surcharges imposed by local carriers is determined by the level of jet fuel prices sold on the Singaporean market. South Korean airlines are allowed to levy fuel surcharges beginning one month after the average jet fuel price on the Singapore spot market rises beyond USD1.50 per gallon for the previous month.
If the price of jet fuel falls below the threshold, no extra is charged. For the month of May 16 to June 15, jet fuel costs on the Singaporean market averaged USD3.64 per gallon.
Industry experts are concerned that growing fuel surcharges would likely result in increased international ticket prices during the summer vacation season.
South Korean Airlines to levy record fuel surcharges on international routes
