Asia-Pacific airlines alter fuel surcharge policy

OREANDA-NEWS. Asia-Pacific airlines AirAsia, Japan Airlines and Qantas have made changes to their jet fuel surcharge policies amid falling global crude prices.

Malaysia-based low cost carrier AirAsia will scrap jet fuel surcharges amid falling global crude prices. The budget airline abolished fuel surcharges effective from yesterday across all its airlines, including AirAsia X, Thai AirAsia X and Indonesia AirAsia X.

AirAsia scrapped jet fuel surcharges for all domestic and international flights in 2008 but reintroduced them in its fares when fuel prices increased in 2011.

Japan Airlines (JAL) will reduce fuel surcharges on all international passenger tickets from 1 February to reflect a fall in jet fuel prices. JAL sets fuel surcharge levels every two months, based on the average price of Singapore jet-kerosine prices in the previous two months. The Singapore jet-kerosine price averaged \$99.07/bl during October-November, down from \$114.64/bl over August-September.

Australia's Qantas will change the current international tariff structure so that fuel surcharges will be absorbed into the base fare. Reductions will vary across the network but average around 14pc, it said.

Falling global crude prices have put downwards pressure on jet fuel prices, jet fuel accounts for an average of 30pc of airlines' operating costs. Asian prompt-month jet swaps were assessed at an average of \$112.35/bl in 2014 but fell to an average of \$64.13/bl over 1-26 January amid lower oil prices.