ANA (TYO:9202), JAL (TYO:9205) Reacessing Fuel Surcharges
Tokyo, Aug 4, 2009 AEST (ABN Newswire) - All Nippon Airways Co. (TYO:9202) and Japan Airlines Corp. (TYO:9205) are reassessing their fuel surcharges and exploring possibility of charging the fees in October to reflect higher oil prices.
ANA and JAL sharply reduced their surcharges this past January and April and then eliminated such charges altogether from July, due to a slump in crude oil prices last year. Elimination of surcharges helped fuel travel demand amid the global economy downturn. The number of domestic passengers travelling on business fell, and international ridership plunged, partly due to the new influenza pandemic. Previously, the airlines had charged 7,000 yen to 14,000 yen on round-trip tickets for flights connecting Japan with Europe and the U.S. and 1,000 yen to 3,000 yen for Chinese routes. Their Chinese peers in June had called for resuming fuel surcharges after the country raised jet fuel prices.
As of July 14, the average price of kerosene in the Singapore market, a benchmark for jet fuel prices, stood at US$70.7 a barrel, above the US$60 threshold at which the surcharge kicks in. As a result, the airlines are likely to bring back the surcharge to help soften the impact of their rising costs.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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