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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL — South Korean travelers and the aviation industry are facing a direct hit from the escalating conflict between the United States and Iran. Major domestic carriers announced on the 16th that fuel surcharges for international flights will more than triple starting in April, far exceeding market expectations of a twofold increase and setting a new record for the sharpest monthly jump.
Record-Breaking Hikes for Major Carriers
Asiana Airlines led the announcement, setting its one-way fuel surcharge for April at between 43,900 KRW and 251,900 KRW, depending on the distance. Compared to the current March rates of 14,600 to 78,600 KRW, this represents a 3.2-fold increase. For travelers planning round-trip flights to long-haul destinations like the U.S., Europe, or Australia, this translates to an additional cost of 346,600 KRW per ticket.
Korean Air followed suit, raising its one-way surcharges to a range of 42,000 to 303,000 KRW. Compared to March (13,500 to 99,000 KRW), long-haul round-trip tickets will become 408,000 KRW more expensive in just a single month. Low-cost carriers (LCCs) like Eastar Jet are seeing similar trends, with dollar-based surcharges jumping from $9–$22 in March to $29–$68 in April.
Unprecedented Jump in Tiers
The fuel surcharge system, designed to compensate airlines for rising oil prices, is based on the average price of Singapore jet fuel and divided into 33 tiers. In an unprecedented move, the surcharge level will leap from Level 6 in March to Level 18 in April—a 12-tier jump in a single month.
To put this in perspective, even during the height of the Russia-Ukraine war in 2022, the surcharge only rose by 8 tiers over a three-month period. The previous record for a monthly increase was a mere 3-tier jump when it hit its all-time high of Level 22 in July 2022.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
