All Nippon Airways (ANA) and Japan Airlines (JAL) are planning to increase fuel surcharges for international flight tickets issued in July and August, with levels likely to reach record highs due to escalating fuel prices driven by conflict in the Middle East [1]. For one-way tickets to North America and Europe, the surcharge for May and June is already set at 56,000 yen by both airlines, and sources indicate it could rise to the upper 60,000-yen range, surpassing previous highs of 58,000 yen for ANA and 57,200 yen for JAL recorded in October and November 2022 [1]. The exact amount of the increases is still being finalized in consultation with Japan's transport ministry and is expected to be decided soon [1].
The upcoming increases will also affect flights to other destinations, including Asia, as fuel surcharges are adjusted in accordance with fluctuations in fuel costs [1]. ANA and JAL determine the surcharge amount based on the average price of kerosene, the main component of aviation fuel, over a two-month period. The average kerosene price for April and May, which will be applied to tickets issued in July and August, exceeded the level the airlines had anticipated [1].
In May, both airlines raised the maximum fuel surcharge allowed to 59,000 yen for flights to North America and Europe, and beginning with tickets issued in July, they will raise the ceiling further [1]. There are concerns about the impact of these increases on leisure travel demand during the summer holiday season, but no specific market reactions or analyst opinions are provided in the article [1].
CONCLUSION
ANA and JAL are responding to surging fuel prices by raising international flight surcharges to record levels, with the new rates expected to exceed previous highs. The increases, driven by higher kerosene costs and ongoing Middle East conflict, may dampen leisure travel demand during the summer, signaling significant market impact for both airlines and travelers.