ANA Holdings Inc and Japan Airlines Co are set to substantially raise fuel surcharges on international flights starting in June, driven by a surge in aviation fuel prices linked to the ongoing Middle East conflict [1]. The new surcharges will coincide with the summer holiday season, raising concerns about potential impacts on travel demand [1]. For flights to Europe and North America in June and July, ANA's surcharge will reach 55,000 yen, an increase of 23,100 yen from April and May, while JAL's surcharge will rise by 21,000 yen to 50,000 yen [1].
On routes to China and Taiwan, ANA's surcharge is expected to increase by 4,900 yen to 14,300 yen, and JAL's by 5,000 yen to 12,400 yen [1]. For flights to South Korea and Russia, ANA's surcharge will rise by 3,200 yen to 6,500 yen, and JAL's by 2,900 yen to 5,900 yen, marking the highest levels under the current pricing system [1]. The price of aviation kerosene, which is refined from crude oil, more than doubled on the Singapore market in March compared to levels before the conflict began in late February [1].
Fuel surcharges are recalculated every two months based on the average price of kerosene, with the surcharges for June and July reflecting prices from February and March [1]. While fuel surcharges are not currently applied to domestic flights, JAL is considering introducing the system from spring 2027 to address long-term increases in crude oil prices. ANA and Skymark Airlines are also contemplating similar measures [1].
CONCLUSION
ANA and JAL's decision to significantly raise fuel surcharges reflects the sharp increase in aviation fuel prices caused by geopolitical tensions. The move is expected to impact travel demand during the summer holiday season and may signal broader industry adjustments if domestic surcharges are introduced in the future. Market sentiment is negative due to higher travel costs and uncertainty about demand.