SEOUL, April 16 (Yonhap) — South Korean airlines will lower fuel surcharges on international routes in May amid falling jet fuel prices, industry sources said Friday.
Starting May 1, the surcharge for one-way tickets on international routes will range from 1,200 won (US$1.07) to 9,600 won depending on the routes, according to the sources.
The amount is down one level from the band of 3,600 won to 24,000 won for this month.
Rising jet fuel prices prompted local air carriers to begin imposing fuel surcharges in April after a one-year hiatus. Fuel surcharges on international routes had stayed at zero since April last year due to low oil prices sparked by the coronavirus pandemic.
Local airlines’ surcharges depend on the level of jet fuel prices traded on the Singaporean market.
If the average jet fuel price on the Singapore spot market rises over $1.50 per gallon during the past month, South Korean airlines are allowed to impose fuel surcharges starting one month later.
If jet fuel prices drop below the threshold, no surcharge is collected. There are 10 levels of surcharges, depending on the length of the route.
Jet fuel prices on the Singapore market averaged $1.55 per gallon between March 16 and Thursday, down from $1.62 a month earlier.
According to the International Air Transport Association, jet fuel prices closed at $66.89 per barrel on April 9, down 8.2 percent from the previous month.
Meanwhile, local airlines’ fuel surcharges on domestic routes will remain unchanged at 2,200 won in May. Airlines started to levy fuel surcharges on domestic routes in April, ending their no-surcharge policy that began in May last year.