With the Middle East crisis dragging on for more than two months, the fuel surcharge applied to tickets issued in May will be about twice as high as the previous month. It is the ripple effect of rising global oil prices following the closure of the Strait of Hormuz. The fuel surcharge has soared more than fivefold in two months.
According to the industry on the 1st, domestic airlines will apply the highest level of fuel surcharge to tickets issued starting that day.
For international routes, airline fuel surcharges are made up of 33 tiers and are adjusted on the 1st of every month based on the Singapore Mean of Platts Singapore (MOPS) prices for refined oil products. The fuel surcharge jumped 12 tiers last month from tier 6 to tier 18. On top of that, it is rising another 15 tiers in May (18 → 33). Since the current fuel surcharge system was implemented in 2016, this is the first time tier 33 has been applied.
A fuel surcharge is an expense added to an airline ticket that reflects global oil prices. Airlines add it to the fare to offset losses from rising oil prices.
Korean Air Lines will impose a one-way fuel surcharge ranging from a minimum of 75,000 won to a maximum of 564,000 won starting this month. Routes with short flight distances, such as to Fukuoka, Japan, will carry a 75,000-won fuel surcharge, while long-haul routes to New York and Washington in the United States will carry a 564,000-won surcharge. Last month's one-way fuel surcharge ranged from 43,900 won to 251,900 won.
Asiana Airlines' international fuel surcharge also rises this month. Asiana Airlines' one-way fuel surcharge is 85,400 won to 476,200 won. Last month it was 43,900 won to 251,900 won. Jeju Air, Korea's No. 1 low-cost carrier (LCC), set the one-way international ticket fuel surcharge at $52 to $126. Last month's fuel surcharge was $29 to $68.
Because the fuel surcharge is at the highest tier now, it is difficult to raise it further even if global oil prices climb. If global oil prices rise from here, the expense burden will fall on the airlines. In response, airlines have stopped operating some routes or reduced frequencies. T'way Air accepted applications for unpaid leave from cabin crew for May to June to cut expenses.