All Nippon Airways and Japan Airlines increased fuel surcharges on Wednesday, pushing fees to more than $400 on some long-haul flights.
The increase, which applies to tickets purchased in July and August, comes despite falling jet fuel prices in Asia. That’s because Japan’s two major airlines calculate their prices based on averages that are several months behind current prices.
Jet fuel fell to $113 per barrel on Wednesday from a record high of $242 per barrel in late March, according to LSEG data. However, the additional charges starting this week are based on average charges of $178.21 in April and May, according to a JAL press release.
The airline said the surcharge could have been even higher without the Japanese government’s budgetary support to deal with soaring energy prices caused by the Iran war.
According to ANA’s website, fuel taxes on some routes have tripled since the start of the Iran war, with ticket prices from Hawaii, India and Indonesia to Japan jumping from $94 in April to $310 in July. The same applies to JAL’s surcharges.
The new tax will be capped at 65,000 yen for flights departing from North America (excluding Hawaii), Europe, the Middle East, and Oceania. That’s the equivalent of about $400, after the yen hit a 40-year low against the dollar on Tuesday.
ANA and Japan Airlines’ fuel surcharges are revised every two months. As a result, prices are expected to drop for tickets purchased in September and October to reflect average jet fuel prices in June and July.
This could help travelers pay for other costs that also increased on July 1st. Departure tax increased from 1,000 yen to 3,000 yen ($18), and visa fees jumped from 3,000 yen to 15,000 yen ($92) per person, the first increase since 1978.
—CNBC’s Matthew Tan and Lim Hui Jie contributed to this report.
