Korean Air is set to impose record fuel surcharges on international routes in July amid soaring jet fuel prices, industry sources said on Thursday.
Starting July 1, the South Korean flag carrier will apply a 42,900 won ($33) to 339,300 won surcharge to one-way tickets on international routes, depending on the destination, reports Yonhap News Agency.
The planned increase will raise the air carrier’s surcharges to Level 22, the highest tier, from the current Level 19.
It marks the highest level since the current surcharge system was adopted in July 2016.
In April 2021, rising jet fuel prices forced local carriers to begin imposing fuel surcharges after a one-year hiatus.
Fuel surcharges on international routes had stayed at zero since April 2020 due to the fallout from the coronavirus pandemic.
Local carriers’ fuel surcharges vary on the level of jet fuel prices traded on the Singaporean market.
If the average jet fuel price on the Singapore spot market rises over $1.50 per gallon for the past month, South Korean airlines are allowed to impose fuel surcharges starting one month later.
If jet fuel prices drop below the threshold, no surcharge is collected.
Jet fuel prices averaged $3.64 per gallon on the Singaporean market for the one month from May 16 to June 15.
Industry watchers voiced concern that rising fuel surcharges will likely lead to higher ticket prices for international routes during the summer vacation season.