"Even Going to Jeju in May Is Scary"... Domestic Flight Fuel Surcharges Nearly Quintuple

As international oil prices surge due to the war in the Middle East, the fuel surcharge on domestic flights in May will rise more than fourfold, deepening airlines' concerns. Because the calculation standard for international flight fuel surcharges reflects a period when prices climbed even higher than for domestic flights, the increase for international routes is expected to be larger. Airlines now face a double blow: losses from higher fuel costs and a potential slump in peak-season travel demand.
Korean Air announced on its website on the 6th that it will raise the one-way fuel surcharge for domestic flights issued in May to about 4.4 times the level of the previous month. The airline explained that this reflects the recent spike in international oil prices and incorporates the higher cost of jet fuel.
A fuel surcharge is an additional fee that airlines tack onto fares to offset losses from rising fuel costs, and it is adjusted every month.
In April, the fuel surcharge for all domestic flight routes was about 7,700 won one way, but in May it will jump to 34,100 won. The surcharge is applied based on the ticketing date and is revised monthly to reflect international jet fuel prices under the Mean of Platts Singapore (MOPS) benchmark.
For example, a Korean Air passenger flying from Gimpo International Airport to Jeju Island on May 11 can purchase an economy discount ticket for 52,700 won, but must pay an additional 34,100 won in fuel surcharge. That surcharge alone amounts to about 65% of the ticket price.
The bigger concern is that the fuel surcharge for international flights in May could rise even further. The May domestic flight fuel surcharge is based on MOPS jet fuel prices from March 1 to 31, after the outbreak of war in the Middle East. In contrast, the international flight surcharge is calculated using MOPS prices from the 16th of the month before last to the 15th of last month, so most observers expect a steeper increase than for domestic flights.
An industry official said, "Because fares on domestic flights are cheaper than on international flights, travelers feel the impact of fuel surcharge hikes more acutely," adding, "We are watching closely, as higher surcharges could dampen demand for trips to Jeju Island."
Last month, the fuel surcharge on international flights had already climbed to level 18, and it is projected to reach the maximum level 33 in May. Earlier, as international oil prices soared due to the war in the Middle East, Korean Air raised its one-way international flight fuel surcharge from around 40,000 won to as high as 303,000 won.
If the fuel surcharge reaches the highest level in May, major airlines' fuel surcharges on Americas routes are estimated at about 550,000 won one way, exceeding 1 million won for a round trip.
Meanwhile, low-cost carriers (LCC) such as Jeju Air and T'way Air are also expected to announce their fuel surcharges for May within the next few days. Korean Air's May fuel surcharge for international flights is scheduled to be released around the 16th.


hoya0222@fnnews.com Kim Dong-ho Reporter