Airline fuel surcharges jump 40% in two months on long-haul routes

International passengers will face higher fuel surcharges next month as rising global oil prices push up jet fuel costs for a second consecutive month.

Korean Air will apply a Level 23 fuel surcharge to international tickets issued from Oct. 1, according to the airline industry on Wednesday. That is two levels up from Level 21 last month. International fuel surcharges can rise as high as Level 33.

The increase means passengers will pay between 49,000 won and 362,600 won ($36 and $265) in fuel surcharges for a one-way international ticket next month, depending on the route.

Fuel surcharges allow airlines to pass part of higher fuel costs on to passengers through ticket prices. The surcharge level for international flights is based on the price of Singapore jet fuel, known as MOPS. The surcharge is determined by the date a ticket is issued, not the date of travel.

The surcharge for October was calculated using average jet fuel prices from Aug. 16 to Sept. 15. MOPS averaged $158.57 per barrel during the period, up 6.2 percent from $149.29 per barrel when September's surcharge was calculated.

Fuel surcharges have swung sharply this year along with global oil prices. They reached the maximum Level 33 in May before falling to Level 27 in June, Level 19 in July and Level 14 in August.

The trend reversed as concerns over crude oil supplies from the Middle East persisted. The surcharge climbed back to Level 21 this month and will rise to Level 23 in October.

Long-haul passengers will feel the increase most.

Korean Air will charge a 362,600 won one-way fuel surcharge on long flights from Incheon to New York, Dallas, Boston, Chicago, Atlanta, Washington and Toronto next month. A round trip will carry 725,200 won in total fuel surcharges.

The figure is a sharp increase from August, when the one-way surcharge on those routes stood at 259,200 won. The charge has risen by 103,400 won, or 39.9 percent, in just two months.

For a family of four flying round trip, fuel surcharges alone would exceed 2.9 million won.

Even shorter routes of 500 miles (805 kilometers) or less will become more expensive. Flights from Incheon to Fukuoka, Japan, as well as Qingdao, Dalian, Shenyang and Yanji in China will carry a one-way surcharge of 49,000 won, up 1,000 won from this month.

Higher fuel prices also put pressure on airlines themselves.

Korean Air estimated in the first quarter that it would consume about 30.5 million barrels of fuel this year. That means every $1 change in the price of jet fuel per barrel could change its annual fuel bill by roughly $30.5 million.

The won's recent strengthening against the dollar to the 1,300-won range, however, provides some relief. Airlines pay many of their expenses, including jet fuel and aircraft leasing costs, in dollars.

BY PARK YOUNG-WOO [[email protected]]