Press Release
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 York-San Paulo |
¥7,000 |
US$63.00 |
¥7,500 |
US$71.00 |
Amsterdam-Madrid |
¥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$170 |
Japan-Korea |
¥2,500 |
¥3,000 |
¥3,500 |
¥4,000 |
¥4,500 |
¥5,000 |
Japan-China, Hong Kong, Taiwan |
¥6,000 |
¥7,500 |
¥9,000 |
¥10,500 |
¥12.000 |
¥13,500 |
Japan - Guam, Philippines, Vietnam |
¥7,500 |
¥9,000 |
¥11,000 |
¥13,000 |
¥15,000 |
¥17,000 |
Japan-Malaysia, Singapore, Thailand |
¥12,500 |
¥15,00 |
¥17,500 |
¥20,000 |
¥22,500 |
¥25,000 |
Japan-Hawaii, India, Indonesia |
¥14,500 |
¥17,000 |
¥19,500 |
¥22,000 |
¥25,000 |
¥28,000 |
Japan - Canada, Europe, Mexico, Middle East, Oceania, USA (ex Hawaii) |
¥22,000 |
¥25,500 |
¥29,000 |
¥33,000 |
¥37,000 |
¥41,000 |
Japan-Brazil |
¥26,000 |
¥30,000 |
¥34,000 |
¥38,000 |
¥42,000 |
¥46,000 |
Benchmark List |
A |
B |
C |
D |
E |
Fuel Price (US$/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 |
Japan-Korea |
¥300 |
¥500 |
¥1,000 |
¥1,500 |
¥2,000 |
Japan-China, 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 |
Japan-Malaysia, Singapore, Thailand |
¥2,000 |
¥4,000 |
¥6,000 |
¥8,000 |
¥10,000 |
Japan-Hawaii, 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 |
Japan-Brazil |
¥8,500 |
¥12,000 |
¥15,500 |
¥19,000 |
¥22,500 |
###