South Korean airlines will not impose fuel surcharges on international routes in October on low oil prices caused by the coronavirus pandemic, industry sources said Wednesday.
The surcharge for one-way tickets on international routes will remain at zero next month, unchanged from a month earlier, according to the sources.
Local air carriers' fuel surcharges on international routes will stay at zero for the seventh consecutive month, raising expectations that the zero rate may last down the road.
If the average jet fuel price on the Singapore spot market rises over $1.50 per gallon over 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 $0.972 per gallon between Aug. 15 and Tuesday.
Local air carriers will also impose no fuel surcharges on domestic routes for the sixth consecutive month in October due to the coronavirus fallout.
Analysts said the zero-rate surcharge is unlikely to be a catalyst for restoring air travel demand or boosting airlines' revenues due to the prolonged coronavirus crisis.
The pandemic and subsequent lockdowns in many countries have sent air travel plummeting, forcing South Korean air carriers to halt most of their international flights. (Yonhap)