South Korean airlines will lower their fuel surcharges for international flights in September and October to reflect the recent drop in jet oil prices, industry sources said Tuesday.
The average price of jet oil hovered at US$3.02 a gallon on the Singaporean spot market from June 1 to July 25, down from $3.16 for the April-May period, sources said.
The drop marks the first time that fuel used on commercial jets declined in 2011.
Fuel surcharges for round-trip flights to the United States, Europe and Australia are likely to drop to $280 from the current $298, they predicted. Those for flights to China and Southeast Asia are expected to be set at $124, down $8 from the present.
The surcharge system set by the government allows flag carriers to adjust surcharges for overseas routes bimonthly in step with the average price of fuel oil in the previous two months on the Singaporean spot market.
If the average price of jet fuel is above $1.50 a gallon during the June-July period, local airlines can increase fuel surcharges on their overseas flights for the September-October period.
However, the carriers have to give notification of the jet fuel price fluctuations a month before they impose fuel surcharges on their international flights.