JAL, ANA To Eliminate Fuel Surcharges Starting In July

TOKYO (Nikkei)–Japan Airlines Corp. and All Nippon Airways Co. announced Thursday they will abolish fuel surcharges on all international flights beginning in July owing to lower oil prices.

This means fuel surcharges will disappear entirely for the first time since the end of January 2005. By lessening the financial burden on flyers, JAL and ANA target a recovery in customer traffic.

Currently, Japan’s two largest airlines each add a fuel surcharge of 7,000 yen on round-trip tickets for flights connecting Japan with Europe and the U.S., excluding Hawaii.

The surcharges are reassessed every three months. In light of a drop in crude oil prices since last summer, the airlines lowered fuel surcharges in January and April of this year.

July-September surcharges are typically based on the average price of jet fuel during the February-April quarter. The price averaged 55 dollars a barrel in the Singapore market, below the 60 dollar threshold at which the surcharge kicks in.

(The Nikkei May 8 morning edition)

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