JAL, ANA To Forgo Fuel Surcharges

TOKYO (Nikkei)–Japan Airlines Corp. and All Nippon Airways Co. will likely eliminate fuel surcharges on all international flights in July to reflect lower oil prices, The Nikkei learned Thursday.

The airlines introduced surcharges in January 2005, with the add-on reassesed each quarter. Both airlines slashed the fees for the three months starting in January and April due to the decline in crude oil prices since last summer.

The July-September surcharges are based on the average price of jet fuel during the February-April period. As of Tuesday, the average price of kerosene in the Singapore market stood at 55 dollars a barrel, below the 60 dollar threshold at which the surcharge kicks in. So, unless the price of kerosene spikes to more than 120 dollars next week, there will be no extra charge.

Currently, Japan’s two largest airlines each add a fuel surcharge of 7,000 yen on round-trip tickets for flights connecting Japan with Europe and the U.S., excluding Hawaii. The amount depends on the distances traveled, with 1,000 yen added to Chinese routes.

The fuel surcharges peaked during the October-December quarter of last year. At that time, passengers had to pay an extra 66,000 yen for European and U.S. routes, and 21,000 yen for flights serving China.

(The Nikkei April 24 morning edition)