South Korea's two major air carriers said Thursday they have decided to impose no fuel surcharges on their international flights next month amid continued low oil prices.
Korean Air Lines Co. and Asiana Airlines Inc. said they have set their fuel surcharge at zero for July, marking the 11th straight month of freeze. It is also the longest zero streak since July 2005, the first time when fuel surcharges were levied on all international flights.
The decision means passengers purchasing international flight tickets for July will not pay any fuel surcharges.
The surcharge system allows air carriers to adjust extra fees for international and domestic routes each month in tandem with changes in the average price of fuel traded via Singapore's spot market.
The surcharge is not levied if the average fuel price falls below $1.50 per gallon. The latest data showed that the average fuel price measured between May 16 and June 15, the base period for determining the amount of surcharge in July, stood at $1.38 per gallon.
Meanwhile, fuel surcharges on domestic flights have been set at 1,100 won ($0.9) for next month, ending the fifth straight month of freeze.
The surcharge for domestic flights is levied if the average fuel price rises above $1.20 per gallon. (Yonhap)