Economy Airfares set to rise as JAL, ANA increase surcharges due to higher fuel prices

[thomas]

Japan Airlines and All Nippon Airways are raising fuel surcharges, in some cases by as much as double, to pass along higher fuel costs driven by the war in Iran. Yesterday, JAL president Tottori Mitsuko said the airline was considering applying for a price increase to cover the higher surcharges on international tickets.

Under the current system, JAL's surcharge is expected to reach the maximum allowed levels. A fee of about ¥50,000 ($315) would be added to tickets issued in June and July for flights between Japan and Europe or North America. The airline also plans to introduce surcharges on domestic routes from April 2027, citing rising jet fuel costs. ANA is looking at similar steps. It is also considering raising surcharges to the maximum levels and extending the fuel levy to domestic flights.

Jet fuel accounted for 9% of petroleum products made from crude oil in Japan in fiscal 2024, compared with gasoline at 31%, the Petroleum Association of Japan reports. Iran's nearly complete closure of the Strait of Hormuz has disrupted global crude oil supplies, causing jet fuel prices to skyrocket. The price of Singapore kerosene, the Asian benchmark for jet fuel prices, reached an all-time high of $242.06 per barrel on Monday.

High crude prices are also boosting costs for raw materials such as naphtha. In the manufacturing sector, the use of surcharges to pass on price increases is becoming more widespread.

Japan’s international flights to get pricier due to hike in fuel surcharge

Fuel surcharges are expected to rise up to double their current rates due to the ongoing Iran conflict.

www.japantimes.co.jp

Paywall alert:

JAL and ANA to double surcharges as Iran war drives up fuel prices

Japan transport industry operators pass on higher fuel costs to consumers

asia.nikkei.com

 

[Lothor]

I can never afford to fly with JAL or ANA anyway!