Fuel surcharges on flights to the Americas may exceed 500,000 won in May, decision expected this week

As crude prices surge due to the fallout from the war in the Middle East, jet fuel prices have jumped, and fuel surcharges on routes to the United States of America (US) in May are expected to exceed 500,000 won.
According to the airline industry on the 13th, Korean Air and Asiana Airlines plan to announce their "May international flight fuel surcharges" on the 16th. Once the fuel surcharges of full-service carriers (FSCs) are finalized, low-cost carriers (LCCs) will in turn set and publish their own international fuel surcharges for May.
Fuel surcharges are set each month in tiers based on the average price of jet fuel in the Mean of Platts Singapore (MOPS) spot market. During the calculation period for May international fuel surcharges, from March 16 to early April, the average MOPS jet fuel price stood at around 465 to 475 cents per gallon. Under the Ministry of Land, Infrastructure and Transport’s distance-based system, if the MOPS average exceeds 470 cents, the highest tier, Level 33, is applied.
After the United States and Iran agreed on a two-week ceasefire on the 7th, MOPS prices at one point fell by more than 10%. However, when talks collapsed on the 12th, international oil prices again came under upward pressure. As a result, there is growing expectation that the unprecedented application of Level 33 could become a reality depending on how oil prices move early this week.
If the highest fuel surcharge tier, Level 33, is applied, the one-way fuel surcharge on routes to the Americas departing from Incheon Metropolitan City is projected to reach about 550,000 won. On a round-trip basis, the surcharge would exceed 1 million won.
Short-haul routes such as those to Japan are also expected to be set in the range of 70,000 to 100,000 won, nearly double the level in April.
An airline industry official said, "Because fuel surcharges reflect oil price trends over several months, it is difficult for airfares to be cut immediately even if international oil prices start to fall," adding, "Although the government is advising airlines to refrain from raising surcharges, carriers are applying them according to the formula, so the burden remains heavy."
hoya0222@fnnews.com Kim Dong-ho Reporter