Seoul, April 1
Fuel surcharges for flights operated by South Korean airlines have surged by as much as threefold from the previous month in April due to the spike in global oil prices, industry watchers said on Wednesday.
Industry leader Korean Air raised its international one-way fuel surcharge to between 42,000 won (US$27.9) and 303,000 won for April, compared with 13,500 won to 99,000 won in March.
On long-distance routes, such as those to New York, Chicago, Washington and Toronto, the surcharge rose 3.1 times to 303,000 won.
Asiana Airlines Inc. also increased its surcharge range to between 43,900 won and 251,900 won for April, from 14,600 won to 78,600 won in March.
Low-cost carriers that charge fuel surcharges in U.S. dollars also sharply raised costs, with Jeju Air Co. increasing rates to between $29 and $68, from $9 to $22 last month.
With international oil prices continuing to climb, industry watchers have expressed concerns that surcharges in May could rise further, potentially pushing surcharges on U.S. routes to the 500,000-won level.
Other observers said companies may further reduce their flight operations to mitigate losses, as it may be difficult for them to continue to pass the burden to passengers.
"Higher surcharges could dampen travel demand during the already slow second quarter," an industry insider said, adding airlines may face losses on each flight if costs continue to rise.
Meanwhile, Korean Air, South Korea's flag carrier, will enter emergency management mode this week to respond to rising fuel costs and other worsening external conditions.
According to the sources, Korean Air Vice Chairman Woo Kee-hong posted an internal notice that it will implement an emergency management system starting Wednesday.
Woo said the decision was made to cope with rising costs driven by surging fuel prices due to the ongoing Middle East conflict. The company will implement phased response measures to improve cost efficiency, he added.
He warned that a prolonged period of high oil prices could seriously disrupt the company's ability to meet its business targets.
"The measures are not a one-off cost-cutting effort but are part of broader structural efforts to strengthen the company's fundamentals," Woo said.
Asiana Airlines Inc., the country's second-largest carrier and a Korean Air subsidiary, also entered emergency management mode last week.
- IANS
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