International flight fuel surcharge hits all-time high [Yonhap News Photo]

Due to the ongoing Middle Eastern conflict, international oil prices are soaring, leading to airline tickets booked this month being subject to a fuel surcharge approximately double that of the previous month.

Airlines, still struggling with declining profitability, appear to be expanding their flight cancellations, particularly on less profitable routes.

According to industry sources on the 1st, the highest fuel surcharge tier, Level 33 (470 cents or more per gallon), will be applied to airline tickets booked this month.

This is the first time Level 33 has been applied since the current fuel surcharge system was introduced in 2016. The surcharge increased by 15 levels in just one month, from Level 18 last month.

The fuel surcharge is an additional amount levied on fares by airlines to compensate for losses incurred due to rising oil prices. The surcharge levels are determined and applied monthly by each airline after internal adjustments based on these tiers.

Korean Air will impose a fuel surcharge of at least 75,000 won to a maximum of 564,000 won per one-way flight starting this month. This represents a 1.8 to 1.9-fold increase compared to last month (42,000 won to 303,000 won).

The shortest routes, such as Fukuoka and Qingdao, will have a 75,000 won surcharge, while the longest routes, including New York, Atlanta, Washington, and Toronto, will incur a 564,000 won surcharge.

Asiana Airlines' international flight fuel surcharge this month also saw a significant increase, ranging from 85,400 won to 476,200 won per one-way trip, approximately doubling from last month's 43,900 won to 251,900 won.

Jeju Air, the top low-cost carrier (LCC) in Korea, will charge a fuel surcharge of 52 to 126 dollars per one-way international flight from Korea. Last month, this ranged from 29 to 68 dollars.

International flight fuel surcharge hits all-time high [Yonhap News Photo]

While these rising fuel surcharges are increasing the burden on consumers purchasing airline tickets, the increase is not sufficient to offset the airlines' soaring fuel costs.

One LCC analyzed its fuel cost burden last month to have increased by 120% compared to the previous month and 130% compared to the previous year. It is reported that the fuel surcharge can only cover half of this increased cost.

Consequently, there is an expanding trend of reducing operations, particularly on less profitable routes.

Asiana Airlines, which had initially planned to reduce its international flight operations by a total of 8 flights on 3 routes this month, recently increased this to 13 flights.

Jin Air, after canceling 45 round-trip flights on 8 routes last month, has decided not to operate 131 flights on 14 routes this month.

Air Premia, which primarily operates long-haul routes, had already decided to cancel 22 flights in July. This includes 8 flights on the Incheon-Da Nang route, 6 on the Los Angeles (LA) route, and 4 each on the San Francisco and Honolulu routes.

Korean Air, which has not yet considered flight cancellations, is reportedly closely monitoring the situation.

An official from the airline industry stated, "We are implementing cost-saving plans in phases, such as transitioning to emergency management and reducing non-essential operating expenses."