Lowered Fuel Surcharges... Consumer Burden '↓'

On the 12th, as the spread of COVID-19 continued, the domestic terminal of Gimpo Airport in Gangseo-gu, Seoul, was crowded with travelers. Photo by Moon Honam munonam@

[Asia Economy Reporter Yoo Hyun-seok] Airline fuel surcharges will be reduced next month.

According to the aviation industry on the 20th, Korean Air's international fuel surcharge for September will be set at level 16, down 6 levels from this month’s level, with charges ranging from 35,000 to 259,000 KRW based on one-way distance. Asiana Airlines will also apply level 16, with charges ranging from 35,300 to 199,800 KRW based on one-way distance.

International fuel surcharges are applied in stages when the average price of Singapore jet fuel exceeds 150 cents per gallon. If it is below that, no surcharge is applied. The fuel surcharge rose from level 10 in March to level 22 in July and August due to rising oil prices. However, as international oil prices have recently fallen, the fuel surcharge has also decreased.

The average price of Singapore jet fuel from July 16 to August 15, which serves as the basis for the September international fuel surcharge, was 304.21 cents per gallon, equivalent to 127.77 dollars per barrel.

Korean Air and Asiana Airlines will also reduce their domestic fuel surcharges from 22,000 KRW this month to 18,700 KRW next month.

The reduction in fuel surcharges is expected to somewhat ease the price burden on consumers for airline tickets. Although international passengers have increased recently due to the easing of COVID-19 quarantine measures, ticket prices surged as seat supply became insufficient.

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