International Airfares Surge 15.9%, Raising Summer Vacation Concerns

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\r[Financial News] As jet fuel prices have surged on the back of the Middle East war, the pace of increase in international airfares has widened to its highest level since the COVID-19 pandemic. With fuel surcharges rising by nearly three times from the previous month, the burden on long-haul travelers is also growing.
According to the Ministry of Data and Statistics on the 9th, the consumer price index for international airfares stood at 138.82 last month. Based on 2020 prices as 100, that means international airfares were up 38.82%. Compared with the same period last year, they rose 15.9%.
The sharp rise in international airfare inflation is the highest since 2022, when overseas travel demand rebounded strongly after COVID-19. It appears to reflect the recent spike in fuel surcharges, driven by higher jet fuel prices amid escalating tensions in the Middle East.
In fact, April's international fuel surcharges rose to about three times the March level. Korean Air increased its surcharge from 13,500 won to 99,000 won to 42,000 won to 303,000 won.
In May, the burden has grown even heavier. International tickets issued after May 1 are subject to the highest surcharge tier, level 33. Korean Air is currently charging 75,000 won to 564,000 won for international fuel surcharges, while Asiana Airlines is charging 85,400 won to 476,200 won.
However, as jet fuel prices have recently turned downward, there is also a view that fuel surcharges could ease somewhat after June. The price of jet fuel in Singapore's spot market, MOPS, has recently fallen to around 381 cents per gallon. That is about 25% lower than the average price used to calculate May's surcharge, which stood at 511.21 cents. Based on international fuel surcharge standards, that corresponds to level 24.
Industry sources expect June's fuel surcharge to be lower than May's. Still, they say it is likely to remain at a relatively high level compared with the peak level of 22 before the Middle East war.
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en1302@fnnews.com Jang In-seo Reporter