This photo taken on Jan. 4, 2022 shows Korean Air’s planes at the Incheon International Airport in Incheon, just west of Seoul. (Yonhap)
SEOUL, July 18 (Korea Bizwire) — Korean Air Lines Co. is scheduled to freeze fuel surcharges on international routes in August despite high jet fuel prices, industry sources said Monday.
Starting Aug. 1, South Korea’s leading air carrier will apply a 42,900 won (US$32.6) to 339,300 won surcharge on one-way tickets for international routes, depending on the route.
It marks the highest amount since the current surcharge system was adopted in July 2016. For this month, the airline imposed record fuel surcharges on international routes in response to soaring fuel prices.
Local carriers’ surcharges, meant to cover losses from rising fuel prices, vary 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 for 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.
Jet fuel prices averaged $3.58 per gallon on the Singaporean market for the one month from June 16 to July 15.
Industry watchers voiced concern that rising fuel surcharges will lead to higher ticket prices for international routes during the summer vacation season.
Korean Air Lines are likely to cut fuel surcharges for September to reflect a recent downturn in international oil prices, they added.
Meanwhile, Korean Air Lines’ fuel surcharges on domestic routes will be raised to 22,000 won next month from 19,800 won for July. It will mark the first time for its domestic fuel surcharge to surpass the 20,000 won level.
(Yonhap)
