JAL Group requested approval from the Japanese Ministry of Land, Infrastructure and Transport (MLIT), to revise the fuel surcharge placed on nearly all international passenger tickets issued on or after July 1, 2007. JAL has decided to increase the fuel surcharge for tickets issued between July 1 to September 30 2007, as the price of Singapore kerosene-type jet fuel has gradually risen to the current level of over US$80.00 per barrel, and has averaged over US$75.00 per barrel in the period February - April 2007.
Based on ticket sales in Japan, the new surcharges per person per sector flown range from 1,700 yen on a Japan - Korea ticket (up from 1,400 yen) to 15,500 yen on a Japan- Brazil ticket (up from 14,500). The surcharge on a Japan-Europe ticket or a Japan- North America ticket will be 12,000 yen, up from 11,000 yen. (See chart below).
The new fuel surcharges will be fixed at these levels throughout the three month period beginning July 1.
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$45.00.
The level of fuel surcharge placed on international tickets issued during the October - December 2007 three-month period will be reviewed by the airline based on the average price of Singapore kerosene for May to July 2007. The fuel surcharge charged for tickets issued from January to March 2008 will be reviewed based on the average price of fuel for August through to October 2007.
The company will continue to conduct 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.