International Fuel Surcharge for October Rises by 2 Tiers Amid Rising Oil Prices

▲ Incheon International Airport runway

Amid an upward trend in global oil prices, the fuel surcharge imposed on international airline tickets for next month is set to rise once again.

According to the aviation industry today (September 16), Tier 23 will be applied to international fuel surcharges for October.

This is a two-tier increase compared to Tier 21 applied in September.

This adjustment follows the average price of oil used as the benchmark for calculating October's international fuel surcharge, which was tallied at 377.54 cents per gallon (158.57 dollars per barrel) from August 16 to September 15.

Oil prices rose by about 6 percent compared to the calculation period for September's fuel surcharge (355.46 cents per gallon and 149.29 dollars per barrel).

The international fuel surcharge peaked at Tier 33 last May, declined for three consecutive months to drop to Tier 14 in August, but surged back up to Tier 21 in September as the Middle East war prolonged longer than expected.

Global oil prices have been on an upward trajectory recently due to growing concerns over supply disruptions following the closure of a key crude oil pipeline in Saudi Arabia.

The international fuel surcharge is a system where airlines reflect part of the cost burden from rising oil prices onto fares, which is billed separately on airline tickets.

The actual amount charged varies depending on the airline and the flight distance.

For Korean Air, the October fuel surcharge by route will range from a minimum of 49,000 won to a maximum of 362,600 won for a one-way trip.

For example, the one-way fuel surcharge for long-haul routes in October—such as Incheon to New York, Dallas, Boston, Chicago, Atlanta, Washington, and Toronto—will be 362,600 won, a 2.43% increase from this month (354,000 won).

For short-haul routes with a great circle distance (shortest distance) of 500 miles or less, such as Incheon to Shenyang, Qingdao, Dalian, Yanji, and Fukuoka, a one-way fuel surcharge of 49,000 won will be applied, up 1,000 won from this month (48,000 won).

(Photo: Yonhap News)

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