Seoul, Oct. 19 (BNA): South Korean airlines will not impose fuel surcharges on international routes in November on low oil prices due to the coronavirus pandemic, industry sources said Monday.
The surcharge for one-way tickets on international routes will remain at zero next month, unchanged from a month earlier, according to South Korean News Agency (Yonhap).
Local air carriers' fuel surcharges on international routes will stay at zero for the eighth consecutive month, raising expectations that the zero rate may last down the road.
Local airlines' surcharges depend on the level of jet fuel prices traded on the Singaporean market.
If the average jet fuel price on the Singapore spot market rose over $1.50 per gallon during the past month, South Korean airlines are allowed to impose fuel surcharges starting one month later.
If jet fuel prices drop below the threshold, no surcharge is collected. There are 10 levels of surcharges, depending on the length of the route. Jet fuel prices on the Singapore market averaged $0.978 per gallon between Sept. 16 and Thursday.
Local air carriers will also impose no fuel surcharges on domestic routes for the seventh consecutive month in November due to the coronavirus fallout. Surcharges are levied if the jet fuel price exceeds $1.20 per gallon.
Analysts said the zero-rate surcharge is unlikely to be of great help to boosting airlines' sales as the prolonged coronavirus crisis has forced them to cut their international flights to some 30 percent of pre-virus levels.