Fuel surcharges on international flight tickets issued in May will surge to their highest level ever, driven by the fallout from the Middle East conflict.
According to the airline industry on the 16th, the Singapore jet fuel average price (MOPS) for March 16 to April 15 — the benchmark for May international fuel surcharges — has been confirmed at level 33 out of 33 levels. This marks the first time fuel surcharges have reached level 33. The surcharge level set in March, before the war broke out earlier this year, was level 6, meaning it has skyrocketed to the maximum level in just two months. Fuel surcharges are additional charges airlines add to fares to offset losses from rising oil prices, set monthly by each carrier based on the Ministry of Land, Infrastructure and Transport's distance-proportional system.
Domestic airlines plan to significantly raise fuel surcharges on tickets purchased next month. Korean Air (003490.KS), the first to announce its surcharges on the day, will increase its May international fuel surcharges by up to 2.1-fold from the previous month. As a result, round-trip fuel surcharges on U.S. routes are expected to exceed 1.12 million won ($830).
Asiana Airlines is also expected to announce its May fuel surcharges later in the day. Low-cost carriers including Jeju Air and T'way Air plan to announce their surcharges for next month within the coming days.
The airline industry expects ticket purchases may increase somewhat this month, as the relatively lower surcharge levels still apply, given that surcharges are based on the date of ticket issuance. Airlines do not charge the difference if oil prices rise further after a ticket is issued, nor do they refund the difference if surcharges decrease.
