Fuel surcharges on domestic flights quadruple for Korean Air, Asiana as oil prices spike

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Fuel surcharges on domestic flights quadruple for Korean Air, Asiana as oil prices spike

A Korean Air flight takes off from Incheon International Airport on April 1. [YONHAP]

A Korean Air flight takes off from Incheon International Airport on April 1. [YONHAP]

 
Airfares on domestic routes have increased sharply as fuel surcharges have more than quadrupled in a month, driven by soaring global oil prices due to the Iran war, according to disclosures from two major full-service carriers on Monday. 
 
Korean Air set its one-way domestic fuel surcharge for May at 34,100 won ($22), up 342.8 percent from April’s 7,700 won, according to its official announcement posted on its website on Monday. Asiana Airlines hiked its fuel surcharge for domestic flights by the same amount on the same day.
 

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The fuel surcharge is an additional fee added to fares to protect airlines from rising oil prices.
 
While the fuel surcharge for April — for both Korean Air and Asiana Airlines — had increased slightly from 6,600 won in March to 7,700 won, the upcoming increase is more drastic. 
  
For domestic routes, surcharges are applied according to a graded scheme when the average price of aviation fuel on the benchmark Mean of Platts Singapore (MOPS) index is more than 120 cents per gallon between the first and last day of the month before last. Accordingly, the domestic fuel surcharge to be added in May is based on oil prices in March, when the war in the Middle East escalated.
 
“The entire calculation period for fuel surcharge coincided with the period that saw a sharp hike in oil prices, which resulted in a significantly large price increase,” a source from the aviation industry said.
 
Check-in counter at Incheon International Airport is seen empty on April 1. [YONHAP]

Check-in counter at Incheon International Airport is seen empty on April 1. [YONHAP]

 
Fuel surcharges for international routes are expected to face more drastic upticks in the upcoming month.
 
International fuel surcharges are calculated based on MOPS aviation fuel prices between the 16th day of the month before last and the 15th day of the previous month.
 
The fuel surcharges applied in April were based on a price of 326.71 cents per gallon, triggering a surcharge level of 18 from the 33-grade scheme. It was a 12-level jump from level 6 in March — the largest monthly increase since the current system was introduced in 2016.
 
As a result, fuel surcharges for international flights surged.
 
Smoke rises from the site of an Israeli strike in Beirut's southern suburbs, near Camille Chamoun Sports City Stadium on April 6. [AFP/YONHAP]

Smoke rises from the site of an Israeli strike in Beirut's southern suburbs, near Camille Chamoun Sports City Stadium on April 6. [AFP/YONHAP]

 
Korean Air has adjusted its one-way fuel surcharge for April to a range of 42,000 won to 303,000 won. The highest surcharge applies to long-haul routes departing from Incheon to destinations such as New York, Chicago and Atlanta, reaching up to 606,000 won for a round-trip ticket.
 
While the international fuel surcharge for May is set to be announced on April 16, further increases are anticipated because the calculation period — between March 16 and April 15 — coincides with the time when oil prices were continuously soaring. Industry forecasters expect the surcharge could reach level 33, the highest tier.
 
As the burden of fuel surcharges grows, changes in consumers’ behaviors can also be seen. Since fuel surcharges are applied based on the ticket issuance date, demand to purchase tickets in advance has increased. Low-cost carriers are also expected to announce their May fuel surcharges in the near future.


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 PARK YOUNG-WOO [[email protected]]
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