Global oil prices have surpassed $100 per barrel, impacting airfare costs. Following a significant increase in international fuel surcharges in September, the pricing assessment for October will conclude today.
On September 15, Brent crude was trading at around $107 per barrel on the ICE Futures Exchange, while West Texas Intermediate (WTI) was priced in the $103 range on the New York Mercantile Exchange (NYMEX). Concerns over supply have been heightened due to attacks on Saudi Arabian energy facilities and disruptions in east-west pipeline operations.
For airlines, jet fuel prices are a direct cost variable, more so than crude oil prices. According to the International Air Transport Association (IATA), the recent weekly average global jet fuel price rose to $181.46 per barrel, a 6.1% increase from the previous week. IATA forecasts that global airline fuel costs will reach $350 billion this year, a 39.3% increase from last year, raising the share of fuel costs in total operating expenses from 25.4% to 31.4%.
The rise in jet fuel prices has already been reflected in September's international airfare. The average price of jet fuel in Singapore from July 16 to August 15, which serves as the basis for September's fuel surcharge, was $149.29 per barrel, up 25.4% from the previous assessment period's $119.06. This increase caused the surcharge levels to jump from 14 to 21.
Korean Air has applied a fuel surcharge ranging from 48,000 to 354,000 won for one-way international flights departing from Korea this month. For long-haul routes such as New York and Washington, the surcharge increased by 94,800 won, from 259,200 won to 354,000 won for a round trip. As a result, the total burden has risen by 189,600 won. Asiana Airlines also raised its one-way fuel surcharge to between 52,000 and 290,100 won during the same period.
Attention is now focused on the international fuel surcharge for October. This surcharge is determined based on the average jet fuel price in Singapore from the 16th of the month before last to the 15th of the previous month. Therefore, the prices reflected for October will be based on the period from August 16 to September 15.
For domestic flights, the surcharge for October has already been set. Korean Air has established the domestic fuel surcharge at 29,000 won for one-way flights, the same as in September. Domestic surcharges are calculated based on the average jet fuel price in Singapore from the 1st to the end of the month before last, meaning the recent surge in September oil prices will not affect the October rates.
It is important to note that fuel surcharges are applied based on the ticket issuance date, not the actual flight date. If the surcharge increases after the ticket is issued, the difference will not be collected, and if it decreases, no refund will be provided.
* This article has been translated by AI.
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