June Fuel Surcharge Raised Again to 'All-Time High'... Consumer Burden '↑'

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Hyun-seok] Due to the rise in international oil prices, the fuel surcharge applied to Korean Air's international flight tickets has once again reached an all-time high.

According to the aviation industry on the 16th, Korean Air's international fuel surcharge for June will be applied at level 19, which is two levels higher than this month, resulting in charges ranging from 37,700 to 293,800 KRW based on one-way distance proportional rates.

Level 19 is the highest level since the distance-proportional system for fuel surcharges was applied in July 2016. The fuel surcharge has steadily increased from level 10 in March, level 14 in April, to level 17 in May.

The international fuel surcharge is applied in stages when the average price of Singapore jet fuel per gallon (1 gallon = 3.785L) exceeds 150 cents. If it is below that, no surcharge is applied. The average price of Singapore jet fuel from April 16 to May 15, which serves as the basis for the June international fuel surcharge, was 335.62 cents per gallon.

The domestic fuel surcharge will increase from 14,300 KRW this month to 17,600 KRW. According to the International Air Transport Association (IATA), as of the 6th, the price of jet fuel in the Asia region was 354.99 cents per gallon, a 108.6% increase compared to May last year.

Recently, with seat supply failing to meet demand causing airfares to surge, the fuel surcharge reaching an all-time high has further increased the burden on consumers.

During the summer peak season, round-trip tickets to London and Paris could be booked for 1.5 to 2 million KRW in 2019, but now prices have risen to approximately 2.2 to 3.5 million KRW. This fare excludes the fuel surcharge. For European and American routes, the maximum fuel surcharge is applied based on distance proportionality on most routes.

The aviation industry is concerned that while travel sentiment, which had been depressed due to the COVID-19 pandemic, is recovering, the high fuel surcharge may hinder the recovery in demand.

This content was produced with the assistance of AI translation services.