JAL lowers fuel surcharge as oil prices subside
February 22, 2009 - 0:0
TOKYO (AP) – Japan Airlines said Friday it will lower its fuel surcharge for international flights starting April 1 because of sliding oil prices.
The extra charge passengers pay to cover fuel costs will drop by between 75 percent to 92 percent, JAL Group, the nation’s top carrier, said in a statement.The surcharge, which now ranges from 2,500 yen ($27) for Japan-Korea flights to 22,000 yen for those to the U.S., will drop to between 200 yen and 3,500 yen.
The price of jet fuel in recent months has dropped to about $64 a barrel, compared to nearly $116 a barrel over the August-October period of 2008.
JAL introduced the fuel surcharge for international tickets in February 2005 in response to rising jet fuel costs.
Other airlines, such as British Airways, Malaysia Airlines and Thai Airways, are also lowering their fuel surcharges as competition intensifies among airlines to attract travelers amid a global downturn.
JAL Group is forecasting a 34 billion yen loss for the fiscal year through March, a reversal from its November projection of a 13 billion yen profit. The carrier made 16.9 billion yen profit in the previous fiscal year.
Travel for domestic passengers has been flat and has tumbled for international passengers and international cargo in recent months, according to JAL.