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Airliners to Raise Fares

Posted March. 21, 2008 10:14,   


Airfares for international flights will go up as much as $72 from next month due to soaring oil prices. Local airline companies, Korean Air and Asiana Airlines, announced Thursday that they will raise their fuel surcharge four levels higher than the current level on April 1 because of the recent price hikes in jet fuel.

Airlines are allowed to add the fuel surcharge on top of their basic rates when jet oil prices rise.

Round-trip fares to Europe will increase by 70,000 won, while those to China and Japan will go up by 40,000 won and 16,000 won, respectively.

Fares for international flights escalated by 100,000 won in January this year, after the then Ministry of Construction and Transportation (now the Ministry of Homeland and Marine Affairs) reorganized the fuel surcharge system last December. The airliners cut their international flight fares slightly in March, but have decided to increase them again as the international oil prices surpassed the $100 per barrel mark.

In the case of Korea Air, the fuel surcharge for long-haul one-way flights, including the Americas, Europe, the Middle East and Africa, will increase from $86 to $122; the fuel surcharge for one-way flights to closer locations, including China, Mongolia, Southeast Asia, India and Guam, will rise from $38 to $54; and the fuel surcharge for flights to Japan will increase from $38 to $54

Asian Airlines has also applied the same criteria as Korea Air.

“The company will suffer from a big loss even after increasing fuel surcharge fees because the level of increase in oil prices is not fully reflected in our increases,” said an official of Korea Air.