Jet fuel surcharges hit record high in May

Travelers continue to feel the impact of ongoing conflict in the Middle East as soaring oil prices push fuel surcharges to some of the highest levels recorded in South Korea’s aviation history.

The fuel surcharge for international flights issued in May has been set at Tier 33, the highest of the 33-level system, as global jet fuel prices skyrocket amid the US-Israeli war on Iran, which has entered its seventh week. The surcharge is the highest since the distance-based proportional system was introduced in 2016.

The previous peak was Tier 22, set during the Russia-Ukraine war in July and August 2022.

Korean Air, the country’s largest airline, raised fuel surcharges for one-way international tickets to 75,000 won ($51) on short-haul routes such as Fukuoka and Qingdao, and up to 560,000 won on long-distance flights, such as Washington and Toronto.

The fee for this month was 42,000 won for short-haul flights and 303,000 won for long-haul flights, respectively.

The surcharge is fixed at the time of ticket issuance, not the date of travel, and remains unchanged even if oil prices fall. Any decline in fuel costs is reflected in the following month’s surcharge.

Fuel accounts for about 30 percent of airlines’ operating costs, leaving carriers highly exposed to price volatility. But once prices exceed the highest surcharge tier, airlines have limited room to pass on additional costs to passengers.

Asiana Airlines set its May international fuel surcharges between 85,400 won and 476,200 won per one-way ticket.

The surcharge has roughly doubled from April’s 43,900 won to 251,900 won and risen by up to six-fold from March. Passengers traveling to the United States or Europe will have to pay the highest charge of 476,200 won.

Low-cost carriers, including Jeju Air, T'way Air and Jin Air, are expected to announce their May fuel surcharge fees in the coming days.