Following Korean Air Lines and Asiana Airlines, low-cost carriers (LCCs) also announced top-tier increases to fuel surcharges that will apply to tickets issued next month.
A fuel surcharge is a fee airlines add to fares to offset losses from rising oil prices. Each carrier sets it according to the Ministry of Land, Infrastructure and Transport's distance-based system.
LCC routes are centered on Asia, so the absolute amounts are smaller than those of full-service airlines, but the average increase is around 80%, which is expected to raise the burden on consumers.
According to the airline industry on the 17th, Jin Air said it will raise May international fuel surcharges to $42–$140 one way. In won, that is about 62,000–207,000 won.
Jin Air's May international fuel surcharge will rise to nearly double this month's ($25–$76). The change reflects the application of level 33, the highest tier under the current fuel surcharge system, due to the fallout from the war between the United States and Israel and Iran.
By route, the longest, Incheon–Phuket, will have a $140 surcharge, up 84% from the previous month. Incheon–Fukuoka, Kitakyushu, Osaka, Takamatsu, and Qingdao; Jeju–Shanghai; and Busan–Osaka and Nagoya will be $42, up 68%.
Incheon–Okinawa, Tokyo, Nagoya, Miyakojima, Ishigakijima, Sapporo, Taipei, and Taichung; Busan–Okinawa, Tokyo, Miyakojima, Sapporo, Taipei, and Taichung; Jeju–Taipei and Hong Kong; and Cheongju–Zhengzhou will be $66, up 89%.
Incheon–Clark and Guilin, and Busan–Clark, Cebu, Guam, and Ulaanbaatar will be $107, up 85%. Incheon–Da Nang, Cebu, Bohol, Guam, Kota Kinabalu, Bangkok, Chiang Mai, Nha Trang, and Phu Quoc, and Busan–Da Nang, Bangkok, Nha Trang, and Phu Quoc will be $117, up 86%.
Other airlines are in the same situation. Jeju Air also set next month's fuel surcharges at $52–$126. That is about an 80% rise from this month's ($29–$68). The longest routes, including Singapore and Denpasar, will be $126, while Fukuoka and Shanghai will be $52.
AIR BUSAN also announced fuel surcharges of $52–$126 for tickets issued next month, up 81% from this month. This month's fuel surcharges for ticketing were $29–$70. Parata Airlines, which only operates Japan and Vietnam routes, said next month's fuel surcharges will be $46–$130, up 66% from this month.
AIR SEOUL, Eastar Jet Co., and Air Premia, which did not announce fuel surcharges for Korea-departing international flights on this day, are expected to unveil surcharges next week that are sharply higher than this month's.
With high oil prices persisting, LCCs are also raising fuel surcharges after full-service airlines, but the industry expects these increases could hit LCCs harder. Because LCCs have a large share of price-sensitive demand, fuel surcharge hikes are more likely to dampen demand.