Low oil price keeps fuel surcharge of airlines at naught for longest streak

Major South Korean airlines will not impose any fuel surcharge on international passengers in the upcoming month, the companies said Tuesday.

Local industry leader Korean Air Lines Co. and its local rival Asiana Airlines Inc. have not charged any fuel surcharges since September 2015, the longest streak since the surcharge system was introduced in July 2005.

Local airlines are allowed to impose a certain amount of fuel surcharges to help cover their costs when the average price of jet fuel from Singapore comes to $1.50 per gallon or above.

The average price of Singaporean jet fuel stood at a little over $1.22 during a 30-period ended Aug. 15, they said.

Domestic passengers, on the other hand, will be asked to pay 1,100 won ($1.01) per flight in fuel surcharges as the system allows fuel surcharges when the price of jet fuel reaches over $1.20 per gallon.

Fuel surcharges for domestic flights have been kept at 1,100 won since July, following a five-month streak of no additional charge between February and June. (Yonhap)