Seoul, Feb 16 : South Korean airlines are set to raise fuel surcharges on international routes next month as jet fuel prices rise at a faster pace, industry people said on Wednesday.
Starting March 1, the surcharge for one-way tickets on international routes will range from 18,000 won (US$15) to 138,200 won, depending on the routes, Yonhap news agency reported citing a Korean Air official said.
The planned hike will raise the surcharges to the highest Level 10 from the current Level 6, which ranges from 10,800 won to 80,400 won.
In April 2021, rising jet fuel prices prompted local carriers to begin imposing fuel surcharges after a one-year hiatus.Fuel surcharges on international routes had stayed at zero since April 2020 due to low oil prices sparked by the Covid-19 pandemic.
Local carriers’ surcharges vary depending 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.
Jet fuel prices averaged at $2.43 per gallon on the Singapore market for the one month from January 16 to February 15.The average price is the basis for setting jet fuel surcharges for March.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.On the domestic routes, fuel surcharges will rise to 8,800 won next month from 5,500 won this month.
The average price for jet fuel was $2.43 per gallon at the Singapore market for the single month that ran from January 16 to February 15.The average price serves as the basis for determining surcharges for jet fuel in March.If the prices of jet fuel fall to levels below that threshold, there is no surcharge paid.
There are 10 levels of surcharges, based upon the length of the route.On the domestic routes the fuel surcharges will go up to 8,800 won in the next month, up from 5,500 won this month.
