As international oil prices fall, fuel surcharges added to international tickets issued in July will also drop by more than 20%.
According to the airline industry on the 16th, the 19th tier of fuel surcharges will apply to international tickets issued next month. That is eight tiers lower than the 27th tier applied this month. This follows a 17.5% month-over-month drop in the Singapore jet fuel average (MOPS), the basis for July fuel surcharges, to 338.3 cents per gallon.
Accordingly, domestic airlines immediately moved to adjust fuel surcharges. For July, Korean Air Lines' fuel surcharge on international flights departing Korea is set at 46,400 won one way for routes of 499 miles or less, such as Incheon–Shenyang, Qingdao, and Fukuoka. That is down 24.6% from 61,500 won this month. For the longest routes, including New York, Dallas, and Boston, the surcharge is set at 344,000 won, down 107,500 won (23.8%) from the previous 451,500 won one way.
Asiana Airlines' fuel surcharge will also fall on a one-way basis, with the lowest band dropping from 68,000 won in June to 48,500 won in July, down 19,500 won (28.7%). The highest band will decrease from 382,800 won to 275,800 won, down 107,000 won (27.9%).
In the airline industry, there is an outlook that the downward trend in fuel surcharges could continue for the time being as international oil prices stabilize. This comes as the United States and Iran recently agreed to end hostilities. The two sides plan to hold an official signing ceremony on the 19th in Geneva, Switzerland. They also agreed to gradually open the Strait of Hormuz, a key route for global crude shipments, without tolls for 60 days.
However, some in the market say it will take considerable time for the energy supply chain to normalize in practice, making it difficult to say the burden of fuel surcharges has been fully resolved.