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Fares / Surcharges

JAL Increases International Fare Fuel Surcharge from October 1, 2008

TokyoAugust 21, 2008: Today the JAL Group requested approval from the Japanese Ministry of Land, Infrastructure, Transport & Tourism (MLITT), to revise the fuel surcharge placed on all international passenger tickets issued for the 3 month period starting October 1, 2008.

JAL has decided to increase the fuel surcharge for tickets issued between October 1 and December 31 2008, as the price of Singapore kerosene-type jet fuel reached record high levels during the 3 month period May - July, 2008, averaging US$163.54 per barrel.

However, after examining market trends and demand as well as the progress of its own restructuring efforts, JAL has decided not to raise fuel surcharges up to its highest level ‘K’. Level ‘K’ would normally have come into effect as the average price of jet fuel for the 3-month benchmark period was in the range of US$160 to under US$170 per barrel.

The airline has opted instead to just increase its fuel surcharges to level ‘I’ which normally would only be used if the average price of jet fuel during a given 3-month benchmark period is in the range of US$140 to under US$150 per barrel.       

Based on a revised fuel surcharge benchmark list for FY2008, the new surcharges per person per sector flown on tickets purchased in Japan, range from 4,000 yen on a Japan - Korea ticket (up from 3,500 yen) to 38,000 yen on a Japan- Brazil ticket (up from 32,000). The surcharge on a Japan-Europe ticket or a Japan- North America ticket will be 33,000 yen, up from 28,000 yen.

Fuel surcharges priced in Japanese yen on Japan - Hong Kong, Malaysia, Singapore, Taiwan and Thailand routes remain unchanged. 

JAL originally introduced the fuel surcharge on international tickets in February 2005 in response to unprecedented rises in the cost of fuel.

The surcharge will be progressively reduced as the price of fuel decreases, and will be cancelled completely when the price of Singapore kerosene stays below the benchmark of US$60.00 per barrel.

The fuel surcharge charged for tickets issued from January to March 2009 will be reviewed based on the average price of fuel for August through to October, 2008.

The company will continue conducting a wide range of countermeasures to limit the full impact of the price increase including fuel hedging, fuel consumption reductions, and the introduction of more fuel-efficient small and medium-sized aircraft to its fleet. 

Despite these measures, the company is still reluctantly obliged to ask its international passengers to bear part of the burden caused by the unprecedented increase in the price of fuel over the past few years. 

Fuel Surcharge Revision (October 1 - December 31, 2008)*

Route

Current (As of July 1, 2008)

Revised (From Oct 1,2008)

(Per person per sector flown)

For sales in Japan

For sales outside Japan

For sales in Japan

For sales outside Japan

Japan-Korea

3,500

US$32.00

4,000

US$38.00

Japan-China

8,500

US$77.00

10,500

US$99.00

Japan- Hong Kong, Taiwan

10,500

US$95.00

10,500

US$99.00

Japan- Guam, Philippines, Vietnam

10,500

US$95.00

13,000

US$123.00

Japan- Malaysia, Singapore, Thailand

20,000

US$180.00

20,000

US$189.00

Japan- Hawaii, India, Indonesia

20,000

US$180.00

22,000

US$208.00

Japan- Canada, Europe, Mexico, Middle East, Oceania, USA (exc Hawaii)

28,000

US$253.00

33,000

US$312.00

Japan-Brazil

32,000

US$289.00

38,000

US$359.00

Vancouver - Mexico City

2,500

US$23.00

3,000

US$28.00

New YorkSan Paulo

7,000

US$63.00

7,500

US$71.00

AmsterdamMadrid

3,500

US$32.00

3,000

US$28.00

Within Europe, Oceania (excludes those specified above/ includes some domestic sectors)

2,000

US$18.00

2,500

US$24.00

Within Asia, Hawaii, North America, (excludes those specified above/ includes some domestic sectors)

500

US$5.00

600

US$6.00



*Fuel surcharges may differ depending on the country in which the ticket is sold. Full details at www.jal.co.jp/en/other/info2006_0714.html

- Fuel surcharge levels are set based on the flight distance for each sector.

- Applicable to all international passenger tickets issued on or after October 1 to December 31, 2008.

- The surcharge applies to flights operated by Japan Airlines, including JAL code-share flights operated by other airlines.

- The same amounts apply to adult/child fares. Infants without a seat are exempted from the fuel surcharge.. The surcharges also apply to frequent flyer program international award tickets issued to members of the JAL Mileage Bank.

- In the case of refunds, the fuel surcharge will be refunded in full and no cancellation or refund charge will be applied.

- The planned increase and extension of the fuel surcharge is subject to government approval.

Revised Fuel Surcharge Benchmark List for FY2008(the year ending Mar 31, 2009)

For the convenience of customers and travel agents, the following chart provides details of the revised fuel price benchmarks (US$/bbl) JAL uses to determine the amount of fuel surcharge (JPY) placed on tickets per person per sector flown. For full details please refer to http://www.jal.co.jp/en/other/info2006_0714_3.html

 

Benchmark List

F

G

H

I

J

K

Fuel Price (US$/bbl)

Singapore Kerosene Hedge

From US$110-under US$120

From US$120-under US$130

From US$130-under US$140

From US$140-under US$150

From US$150-under US$160

From US$160-under US$170

JapanKorea

2,500

3,000

3,500

4,000

4,500

5,000

JapanChina, Hong Kong, Taiwan

6,000

7,500

9,000

10,500

12.000

13,500

Japan - Guam, Philippines, Vietnam

7,500

9,000

11,000

13,000

15,000

17,000

JapanMalaysia, Singapore, Thailand

12,500

15,00

17,500

20,000

22,500

25,000

JapanHawaii, India, Indonesia

14,500

17,000

19,500

22,000

25,000

28,000

Japan - Canada, Europe, Mexico, Middle East, Oceania, USA (ex Hawaii)

22,000

25,500

29,000

33,000

37,000

41,000

JapanBrazil

26,000

30,000

34,000

38,000

42,000

46,000



 

Benchmark List

A

B

C

D

E

Fuel Price (US$/bbl)

Singapore Kerosene Hedge

From US$60-under US$70

From US$70-under US$80

From US$80-under US$90

From US$90-under US$100

From US$100-under US$110

JapanKorea

300

500

1,000

1,500

2,000

JapanChina, Hong Kong, Taiwan

1,000

2,000

3,000

4.000

5,000

Japan - Guam, Philippines, Vietnam

1,500

2,500

3,500

4,500

6,000

JapanMalaysia, Singapore, Thailand

2,000

4,000

6,000

8,000

10,000

JapanHawaii, India, Indonesia

3,000

5,000

7,000

9,500

12,000

Japan - Canada, Europe, Mexico, Middle East, Oceania, USA (ex Hawaii)

5,000

8,000

11,500

\15,000

18,500

JapanBrazil

8,500

12,000

15,500

19,000

22,500



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 FSC Oct 2008.pdf

 

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