Alphabiz - Airfares Surge as Fuel Surcharges Hit Record High Amid Prolonged Middle East Conflict

Photo courtesy of Yonhap News

[Alpha Biz= Kim Jisun] Fuel surcharges on international flights departing next month are set to reach record highs, driven by prolonged geopolitical tensions in the Middle East and soaring jet fuel prices.

A traveler in his 30s, who had booked a honeymoon trip to the Maldives earlier this year, was recently asked by an airline to pay an additional KRW 10 million after route changes and higher fuel costs. The itinerary was initially set to transit via Doha, but was rerouted through Singapore due to regional instability, with fuel surcharges rising by roughly KRW 5 million per person.

According to industry sources on April 16, Korean Air will significantly raise fuel surcharges for tickets issued in May. For short-haul routes, surcharges will increase from KRW 42,000 to KRW 75,000 per one-way trip, while long-haul routes will rise from KRW 303,000 to KRW 564,000. This represents more than a fivefold increase compared to two months earlier.

Similarly, Asiana Airlines plans to raise international fuel surcharges from KRW 43,900–251,900 to KRW 85,400–476,200 per one-way ticket. Low-cost carriers are also expected to announce similar increases.

Fuel surcharges are additional fees imposed by airlines to offset rising fuel costs and are adjusted monthly based on distance under government guidelines.

The sharp increase reflects a surge in jet fuel prices. The Singapore jet fuel benchmark (MOPS), used as the basis for May surcharges, averaged 511.21 cents per gallon (USD 214.71 per barrel), placing it in the highest surcharge bracket. This marks the first time since the current pricing system was introduced in 2016 that the top-tier level has been applied.

The surcharge level has risen dramatically from Level 6 in March to Level 33 in May, highlighting the rapid escalation in aviation fuel costs amid ongoing geopolitical uncertainty.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)