Japan Airlines, ANA to raise fuel surcharge to record highs

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Japan Airlines, ANA to raise fuel surcharge to record highs

Japan Airlines Co. aircraft are seen parked at Haneda Airport on March 2. Shinya Matsumoto Japan Airlines Co. and All Nippon Airways Co. plan to raise their fuel surcharges to record highs starting in August due to the soaring prices of crude oil.

Japan's two largest airlines burdening passengers with higher surcharges may hurt the recovery of demand for international flights, according to observers.

Shuichi Sakai, the president of Purpose Japan Co. in Tokyo, said the move will be detrimental to the recovery of demand for overseas travel. JAL will raise its surcharge for August and September. The surcharge for a one-way flight from Japan to Honolulu will be 30,500 yen $224, an increase of 6,900 yen from the current cost.

The surcharge for a flight to Europe or North America will be 47,000 yen, which is 10,200 yen higher than the current charge.

The most inexpensive round-trip economy class to Honolulu in August and September was listed at 55,000 yen as of July 4. The round-trip surcharge will be raised from 47,200 yen to 61,000 yen. Passengers must pay a surcharge in addition to the airline fare.

The surcharge is more expensive than the fare itself.

The market price in Singapore is where jet fuel is bought and sold, which is why the two major airlines set their surcharges from their predetermined price lists.

No surcharge was applied when demand for crude oil fell sharply because of the novel coronaviruses epidemic.

Fuel prices went up due to the return of demand for air travel and economic sanctions against Russia. Fuel prices were above the highest level the company expected, according to JAL's price list.

The surcharge for a flight from Japan to Europe or North America is currently set at 36,800 yen based on the maximum fuel price at the range between 14,000 yen and 14,999 yen per barrel, which was assumed before JAL reviewed its price list.

If the price of fuel reaches the revised price ceiling of 20,000 yen per barrel, a 57,200 yen surcharge will be added to the fare for one-way flights.

ANA will raise its surcharge for August and September to a record high level.

The surcharge for a one-way flight from Japan to Hawaii will be 31,100 yen, an increase of 7,300 yen from the current one.

The surcharge for a one-way flight to Europe or North America will be 49,000 yen, which is up 11,600 yen.

ANA is reviewing its fuel price cap.

Major travel agency H.I. S. Co. said more and more Japanese have returned to overseas travel because the government has eased border restrictions.

Travel prices will be higher due to the weakening yen and soaring surcharges, which is why they are holding off on travel or booking their trips earlier.