Korean Air Lowers September Airfare Fuel Surcharge Reflecting Oil Price Drop

[Asia Economy Reporter Yoo Hyun-seok] Airline fuel surcharges will be reduced next month.

According to the aviation industry on the 16th, Korean Air's international fuel surcharge for September will be set at 16 levels, down 6 levels from this month, with charges ranging from 35,000 to 259,000 KRW based on one-way distance.

The fuel surcharge had risen from 10 levels in March to 22 levels in July and August due to rising oil prices, resulting in a maximum charge of 339,300 KRW. Reflecting the recent decline in oil prices, the surcharge will be significantly reduced next month.

The average price of aviation fuel in Singapore, which serves as the basis for the September international fuel surcharge, was $127.77 per barrel from July 16 to August 15.

Domestic fuel surcharges will also decrease from 22,000 KRW in August to 18,700 KRW in September.

The reduction in fuel surcharges is expected to somewhat ease the burden of airfare prices on consumers. Although international passengers have increased recently due to the easing of COVID-19 quarantine measures, airfare prices surged due to a shortage of seat supply.