▲ A Korean Air aircraft taking off from Incheon International Airport
Fuel surcharges on international flights issued in July will decrease by more than 20% due to the decline in global oil prices.
According to the aviation industry, the 19th tier of fuel surcharges will be applied to international flight tickets issued next month.
This is an 8-tier drop from the 27th tier applied this month.
The adjustment is due to the average price of Singapore jet fuel (MOPS), which serves as the benchmark for July's fuel surcharges, falling 17.5% from a month ago to 338.3 cents per gallon ($142.09 per barrel, based on the period from May 16 to June 15).
Fuel surcharges had climbed to the highest level of the 33rd tier for tickets issued in May following the impact of the Middle East conflict, but have now fallen for two consecutive months.
Jet fuel prices have dropped 33.8% compared to two months ago (511.21 cents per gallon).
Domestic airlines, including Korean Air, plan to set specific fuel surcharges based on this tier adjustment.
Korean Air, which imposed fuel surcharges ranging from a minimum of 61,500 won to a maximum of 451,500 won per one-way trip this month depending on the route, plans to charge between 46,400 won and 344,000 won next month.
The lowest tier for Korean Air fuel surcharges applies to short-haul routes from Incheon to Shenyang, Qingdao, Dalian, Yanji, and Fukuoka.
The highest tier applies to long-haul routes to the Americas, such as Incheon to New York, Dallas, Boston, and Atlanta.
With the one-way fuel surcharge for the lowest tier decreasing by 15,100 won (24.6%) and the highest tier by 107,500 won (23.8%) compared to a month ago, the burden on international travelers during the summer vacation season is expected to ease slightly.
For round-trip tickets, the reduction in fuel surcharges will be at least 30,200 won, with a maximum reduction of 215,000 won (for routes such as New York).
Fuel surcharges had risen to a peak of 75,000 to 564,000 won one-way in May.
Compared to that period, the fuel surcharge for a round-trip to New York will have decreased by 440,000 won in two months.
However, the July fuel surcharges are still about three times higher than those in March (13,500 to 99,000 won one-way), before the impact of the war intensified.
Asiana Airlines' fuel surcharges will also decrease, with the lowest one-way tier dropping from 68,000 won in June to 48,500 won in July, a reduction of 19,500 won (28.7%).
The highest tier will fall from 382,800 won to 275,800 won, a decrease of 107,000 won (27.9%).
The lowest tier, covering distances of less than 500 miles, includes routes to Fukuoka, Shenyang, Qingdao, Dalian, and Yanji.
The highest tier, covering distances of 5,000 miles or more, includes routes to Los Angeles, San Francisco, Seattle, New York, Paris, and London.
For Southeast Asian routes such as Vietnam, Thailand, and the Philippines, the one-way surcharge will be applied at 139,400 won, down from 116,700 won.
The aviation industry expects that the further decline in fuel surcharges will improve air travel demand.
There had been concerns within the industry that booking rates were sluggish, except for short-haul routes, due to high fuel surcharges.
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.