Due to the decline in international oil prices,
fuel surcharges hit a 'three-year low'
With airline ticket costs dropping significantly,
demand for overseas travel is also expected to surge
With the decline in international oil prices, fuel surcharges for international flights have dropped to their 'lowest level' in three years, which is expected to further ease the burden of purchasing airline tickets. In particular, as this coincides with the upcoming May golden holiday, demand for overseas travel is also expected to surge.
On August 5 last year, Incheon International Airport Terminal 1 was bustling with travelers. Photo by Kang Jinhyung
On April 25, MoneyToday, citing the airline industry, reported that "Korean Air will lower the fuel surcharge for international tickets (one-way departing from Korea) by up to about 22.6% compared to the previous month, starting from May 1." As a result, the fuel surcharge, which ranged from 13,500 won to 99,000 won depending on the route distance, will be adjusted to between 10,500 won and 76,500 won.
Asiana Airlines has also decided to lower its international fuel surcharge by up to about 21.1% starting in May. The surcharge that passengers will have to pay is expected to range from 11,700 won to 65,600 won. Jin Air, which sets its fuel surcharge in US dollars, will also lower its international fuel surcharge by between 1 and 4 dollars.
The reason for the significant drop in international fuel surcharges among major domestic airlines is the downward trend in jet fuel prices. International fuel surcharges are set monthly based on the average price of Singapore jet fuel (MOPS). The MOPS average price for the period from March 16, 2025, to April 15, 2025, which serves as the basis for the May surcharge, was 197.94 cents per gallon, corresponding to level 5. This represents a sharp decline compared to two months ago, when the average price was at level 8. In particular, this is the first time in 5 years and 10 months since June 2019 that Korean Air has reduced its international fuel surcharge to level 5. At that time, the fuel surcharge for the shortest routes was 8,400 won, which is similar to the current level.
The industry expects that this reduction in fuel surcharges, combined with increased travel demand, will have a positive effect on expanding passenger demand. In particular, with Labor Day on May 1, if people take a day off on Friday, May 2, it is possible to have up to a six-day golden holiday, which is expected to significantly increase demand for both domestic and international travel. It is already known that many flights are sold out. An industry official said, "Currently, tickets to Jeju are already sold out," and added, "With rising expectations for the May golden holiday, demand for overseas travel is increasing. As the holiday approaches, this trend is expected to intensify even further."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
