Airlines set to hike fuel surcharges
Published : May 29, 2011 - 19:24
Updated : May 29, 2011 - 19:24
Korean airlines are expected to jack up their fuel surcharges on international flights for July and August, but the increase rate will likely slow amid easing fuel prices, officials and industry sources said Sunday.

The average price of jet fuel hovered at about $3.16 a gallon on the Singaporean spot market from April to May 28, compared with $3.02 per gallon between February and March, according to the Ministry of Land, Transport and Maritime Affairs and industry sources.

Fuel surcharges for round-trip flights to the United States, Europe and Australia are likely to surge to $298 from the current $280, they predicted. Those for flights to China and Southeast Asia are expected to be raised to $132, up $8 from the current level. 

(Yonhap News)

The surcharge system set by the government allows local carriers to adjust surcharges for overseas routes bimonthly in step with the average price of fuel oil in the previous two months on the Singaporean spot market.

If the average price of jet fuel is above $1.50 a gallon during the April-May period, local airlines can increase fuel surcharges on their overseas flights for July and August after a month.

However, the carriers have to give notification of the jet fuel price fluctuations a month before they impose fuel surcharges on their international flights.

Industry sources said the growth margin of fuel surcharges may ease in July and August since the jet fuel price for May stands at $3.05 per gallon, down $2.50 from the previous month. (Yonhap News)