International flight fuel surcharges for May have surged to record highs as the high exchange rate and high oil price environment persists amid Middle East tensions. Fuel surcharges alone for flights between Incheon and the U.S. East Coast now exceed 1.1 million won.
According to the aviation industry on the 16th, the Mean of Platts Singapore (MOPS) jet fuel price averaged 511.21 cents per gallon ($214.71 per barrel) from March 16 to April 15—the reference period for May fuel surcharges—reaching Level 33, the highest applicable tier (470 cents per gallon or above). This marks the first time fuel surcharge standards have reached Level 33. The previous record for international fuel surcharges was Level 22, applied in July-August 2022 when international oil prices rose due to the Russia-Ukraine war.
The applicable tier for May jumped 27 levels in just two months, rising from Level 6 in March (before the Middle East war broke out) to Level 18 in April. The 15-level increase between April and May represents the largest monthly jump since the current fuel surcharge system was introduced in 2016.
Domestic airlines are reflecting the Level 33 tier by raising fuel surcharges on tickets issued next month by up to approximately 520,000 won round trip compared to this month.
Korean Air (003490.KS) charged fuel surcharges ranging from a minimum of 42,000 won to 303,000 won one way depending on distance this month, but will apply charges from 75,000 won to 564,000 won starting in May. The Incheon-Fukuoka and Incheon-Qingdao routes will be 75,000 won, while U.S. East Coast routes including Incheon-New York, Dallas, Boston, and Chicago will be 564,000 won.
For U.S. East Coast routes, fuel surcharges alone for a round trip will reach 1.128 million won—5.7 times higher than March (198,000 won).
Asiana Airlines (020560.KS) also announced fuel surcharges ranging from 85,400 won to 476,200 won one way as of that day. This is double this month's rates (43,900 won to 251,900 won) and approximately six times higher than March (14,600 won to 78,600 won). Low-cost carriers including Jeju Air, T'way Air, and Jin Air are also expected to announce similar surcharge increases.
The aviation industry explained that May fuel surcharges increased significantly in just one month because April's applied surcharges included Singapore jet fuel prices from February 16-28, before the Middle East war broke out, and thus did not fully reflect the increases. An industry official said, "There are concerns that the steep increase in airfare burden for travelers will negatively impact overseas travel demand."
