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Travelers buckle in as airfares soar on global oil price surge

Published: 01 Apr. 2026, 19:19 Updated: 01 Apr. 2026, 19:59

Passenger airplanes are seen before departure at Incheon International Airport on March 22. [NEWS1]

Airfare is rising sharply as a surge in global oil prices ripples through the aviation industry, raising concerns over further cost increases for travelers.

The spike reflects a rapid increase in fuel surcharges imposed by airlines following higher oil prices, with additional hikes expected in the coming months due to a lagged pricing system. As costs climb, both airlines and refiners are scrambling to manage the impact, while the government is reviewing potential support measures to stabilize supply and contain disruptions.

Korean Air raised its one-way fuel surcharges from 21,000 won ($14) to 57,000 won on Northeast Asia routes — China and Japan — from April, according to the aviation industry on Wednesday. For Southeast Asia routes, the increase was from 39,000 won to 123,000 won. Surcharges on U.S. East Coast routes also jumped significantly from 99,000 won to 303,000 won.

Low-cost carrier Jeju Air likewise increased its fuel surcharge roughly threefold, from between $9 and $22 to between $29 and $68 this month.

Further increases are likely in May. Fuel surcharges are calculated based on the average aviation fuel price in the Mean of Platts Singapore (MOPS) from the 30-day window ending one month prior to the billing period. Domestic airlines classify fuel prices into 33 tiers and announce the applicable surcharge for the following month on the 16th of each month.

As of Tuesday, the MOPS aviation fuel price stood at 522.08 cents. If this trend continues through April 15, fuel surcharges for May are expected to reach the unprecedented highest level, tier 33. If reached, the round-trip fuel surcharges on U.S. East Coast routes could reach as high as 1 million won.

Customers fuel their cars at a gas station in southern Seoul on March 31, when the oil prices rose to near 2,000 won per liter ($5.03 per gallon). [YONHAP]

The weak won spells even stronger headwinds for the flight services.

Airlines are struggling because rising costs are difficult to fully pass on to ticket prices, as base fares are subject to oversight by the Ministry of Land, Infrastructure and Transport and must remain within a certain range.

“Airlines may reluctantly release more discounted tickets, rather than just flying the plane with empty seats,” said an airline industry source.

Some airlines have already begun reducing flights. On Wednesday, Jeju Air announced it would cut 110 flights across three Southeast Asian routes in May and June. Korean Air, which has declared an emergency management plan, aims to absorb the industry shockwave by increasing its share of the cargo business.

Industry insiders warn that, if the situation persists, some routes could face shutdowns. The government, which had previously ruled out support, is now reviewing support measures, including the use of stockpiled aviation fuel.

Refiners, which must also secure supply amid soaring oil prices, are turning to the government’s “strategic stockpile swap” program to manage the crisis. The plan involves borrowing oil from government reserves and repaying it later to weather the shortage.

Plumes of smoke and fire rise after debris from an intercepted Iranian drone struck an oil facility, according to authorities, in Fujairah, United Arab Emirates, on March 14. [AP/YONHAP]

One refiner signed a stockpile swap agreement the previous day and is receiving 2 million barrels from reserves managed by the Korea National Oil Corporation, the government said on Wednesday.

The country’s four major refiners, which have requested a total of 20 million barrels in swaps through May, have welcomed the move.

“While requested volumes vary by company, based on the combined daily refining capacity of 520,000 to 840,000 barrels, this could buy the industry anywhere from two weeks to one month,” said an industry representative.

“Two million barrels is not that much; it is roughly equivalent to one very large crude carrier, but that shows how urgent the situation is,” said one industry source.

On the deal that requires that alternative crude shipments must be secured before swaps are granted, the representative added, “It effectively means companies must secure alternative supplies at all costs. The government expects supply to remain stable through June, but that assumption depends on the war ending.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE YOUNG-KEUN, LEE SOO-JUNG [[email protected]]