All Nippon to raise surcharges in final quarter; double-digit jump for most international routes – 20/08/08

JAPAN. All Nippon Airways is set to hike its fuel surcharges on international flights for the final quarter, with most routes to incur double-digit increases.

Travel Journal International (TJI) Online* reported that the carrier – the country’s second-largest behind Japan Airlines – has applied to the Ministry of Land Infrastructure and Transport for approval to raise its surcharges on international routes from 1 October to 31 December. It cited the rise in the cost of jet fuel.

Owing to the continuing rise in the cost of jet fuel, Nippon Airways (NH) has filed for approval to raise its fuel surcharge on international flights from 1 October to 31 December, with most routes to see a double-digit jump.

TJI noted: “The fuel surcharge is fixed for a period of three months, after which it is revised on the basis of the average market price of Singapore kerosene for the three months previous to the date of application for revision.”

Routes to Vietnam and Guam will see the biggest increase in surcharges, up +23.8% to ¥13,000. China routes take a +23.5% hit to ¥10,500.

Routes covering North America, Europe, the Middle East and Europe will see a +17.9% increase to Â¥33,000 while travellers to Hawaii – a destination already under cost-driven pressure – and India will pay Â¥22,000 more, up +10%.

Routes to Thailand, Malaysia and Singapore will remain unchanged with a ¥20,000 surcharge.

The airline said that the fuel surcharge will not be revised for the three months regardless of market movements (over the past month the price of oil has dropped by around -20%). But it held out the prospect of a downwards revision for the first quarter of 2009. If the three months average cost of Singapore kerosene falls below US$60 per barrel the fuel surcharge will be removed altogether, said the carrier.

[Oil price update: Prices bounced back yesterday as the US Dollar weakened and US investors worried that a predicted fall in gasoline supplies could cause refineries to step up crude use. As a result, US crude for September delivery rose US$1.66 a barrel to US$114.53. The move followed a sharp drop to a four-month low – welcome relief after a record high of US$147.27, reached on 11 July. ]

*Editor’s note: For the full report please visit https://tji.tjnet.co.jp. The Moodie Report works closely with TJI Online, the pre-eminent provider of information on the Japanese travel industry. Week in, week out, it provides timely and sharp analysis of the all-important Japanese travel market – international and domestic. It comes with our highest recommendation.

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