International Flights' Fuel Surcharge to Double This Month

As instability in the Middle East pushes international oil prices sharply higher, the fuel surcharge for international flights booked this month will approximately double compared to last month. This increase reflects the application of 'Level 33,' the highest tier, which is triggered when the cost of fuel exceeds 470 cents per gallon. This is the first time the fuel surcharge has reached this highest level since the system was introduced in 2016, marking a surge of 15 levels from 'Level 18' just last month.

The fuel surcharge is an additional fee levied by airlines on top of the ticket price to mitigate losses from rising fuel costs. Korean Air is now charging a fuel surcharge of between 75,000 and 564,000 Korean won per one-way ticket, an increase of 1.8 to 1.9 times from last month's range of 42,000 to 303,000 won. Asiana Airlines has set its one-way surcharge between 85,400 and 476,200 won, nearly doubling from last month's 43,900 to 251,900 won. Jeju Air is imposing a surcharge of $52 to $126 per one-way international ticket originating from Korea, a significant increase from last month's $29 to $68.

Airlines are concerned about deteriorating profitability, as the increased fuel costs can only be partially covered, offsetting roughly half of the additional burden. Consequently, they are beginning to scale back operations, focusing on routes with lower profitability. Asiana Airlines has expanded its planned flight reductions for international routes this month from an initial 8 flights across 3 routes to 13 flights. Jin Air, following cancellations of 45 round-trip flights across 8 routes last month, plans to not operate 131 flights on 14 routes this month.