Korean carriers cut Thailand routes

South Korea’s budget airlines are trimming some Thailand flying and adding higher fuel surcharges as jet fuel costs jump. (en.yna.co.kr) Yonhap reported on March 26 that Air Busan had already reduced some international flights starting in April, while T’way Air was considering cuts on select Southeast Asian routes. The same report said jet fuel prices in Asia and Oceania rose 16.6 percent to $204.95 a barrel in the week of March 13 to March 20 from the previous week. (en.yna.co.kr) The Korea Times reported on March 30 that Air Busan began suspending Busan routes to Da Nang, Cebu and Guam in April, part of a wider pullback by low-cost carriers facing higher fuel bills and weaker demand. The paper said airlines are paying more because fuel is bought in dollars and the Korean won has weakened against the dollar. (koreatimes.co.kr) Fuel surcharges are the extra fees airlines add to tickets when oil prices rise. In South Korea, those charges jumped sharply for April tickets after the run-up in global oil prices tied to Middle East tensions. (koreatimes.co.kr) The Korea Times said Korean Air lifted its international one-way fuel surcharge for April to 42,000 won to 303,000 won, up from 13,500 won to 99,000 won in March. Asiana Airlines also raised its range to 43,900 won to 251,900 won from 14,600 won to 78,600 won, and low-cost carriers charging in dollars raised fees as well. (koreatimes.co.kr) Thailand routes are exposed because they are long enough for fuel costs to matter, but price-sensitive enough that airlines can struggle to pass the full increase on to travelers. A Korea Times report on March 23 said fares were expected to rise by as much as 84,000 won on Bangkok routes when the new April surcharges took effect. (koreatimes.co.kr) That pressure is spreading beyond one or two carriers. Yonhap said Jeju Air, T’way Air and Jin Air were also weighing cuts on some Southeast Asian routes, while Air Premia and Eastar Jet were suspending selected long-haul and Vietnam services. (en.yna.co.kr) Travel agencies in Korea told The Korea Times that customers were rushing to issue tickets before the April surcharge increase, and some were reconsidering overseas trips after fare quotes climbed. Airlines, meanwhile, were overhauling schedules and asking the transport ministry to delay reallocating airport slots and traffic rights. (koreatimes.co.kr) For travelers, the immediate effect is simple: fewer seats on some leisure routes and a bigger fuel line on the fare breakdown. For airlines, the next decision is whether oil prices and the won stabilize before more summer schedules are cut. (koreatimes.co.kr)