Carriers plan to raise fuel surcharge next month
Flag carriers Korean Air Lines and Asiana Airlines said yesterday the fuel surcharge for international flights departing will be raised to level 17 from 16.
The fuel surcharge rate structure consists of 33 levels and is based on the trend of the average price of Mean of Platts Singapore (MOPS), a measure of fuel oil cost.
With the level 17 rate, a one-way ticket to the United States will carry a fuel surcharge of $176 starting in March, up $11, while the surcharge for Europe and Africa flights will go up $10 to $168.
Domestic flights were no exception, as the surcharge will be 13,200 won ($21.50), an increase of 1,100 won.
From Jan. 16 to Feb.15, the average jet fuel price in MOPS was traded at $312.96 per gallon, 12 cents higher than in the previous period.
The fuel surcharge level has been going up steadily, starting at 15 in January and 16 last month. The level is similar to what it was last year, but is rising quickly. In 2012, the level was 15 in January and 18 in May.
Fuel costs account for 30 percent to 40 percent of an airline’s total costs.
Fuel surcharges applied only to cargo flights until they were added to passenger flight costs in April 2005.
By Joo Kyung-don [email@example.com]