Korean carriers up fares despite lower oil prices
Korean air carriers are expected to raise air fares next month despite the recent drop in oil prices.
Industry sources quoted by Korea Herald said Korean Air Co. and Asiana Airlines Inc. have planned to apply the highest oil surcharges allowed.
It said the airlines were making the move even though the price of oil has recently dropped to US$114 from record high US$144.
The increased oil surcharges would allow the two air carriers to add KRW2,200 (US$2.10) for domestic flights and a KRW36,000 (US$35.50) for international flights – the maximum allowed.
The price hikes come as the Transport Ministry earlier this year permitted air carriers to increase oil surcharges based on the average oil price calculated for two months in advance. According to the report, the rule allowed carriers to apply additional oil surcharges even when oil prices dropped.
Comments are closed.