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The Honolulu Advertiser
Posted on: Saturday, February 21, 2009

A BOOST FOR TOURISM
JAL cuts fuel surcharge by 85% on Isle flights

By Robbie Dingeman
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Japan Airlines announced it will cut its fuel surcharge beginning April 1 in response to declining oil prices. The move follows similar action by All Nippon Airways earlier this month.

ADVERTISER LIBRARY PHOTO | October 2008

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Japan Airlines said it will slash its fuel surcharge in April in response to declining oil prices — a move that could spur more travel to the Islands.

JAL, following a similar move by All Nippon Airways, said its "international fare fuel surcharge" will drop by 85 percent on flights between Japan and Hawai'i beginning April 1. ANA had made its announcement earlier this month.

The reduction may help boost the number of Japanese visitors to Hawai'i — which has slumped in recent months. The move followed a 34 percent fuel surcharge decrease in January.

The latest reduction will lower the fuel surcharge to $20 each way from $135 each way on trips between Japan and Hawai'i. The surcharge on a roundtrip ticket will drop to $40 from $270.

JAL said the fuel surcharge reduction on all international flights ranges from 75 percent to 92 percent.

High fuel surcharges have been cited as a factor in a declining number of Japanese tourists flying to the Islands.

Japan Airlines noted that the surcharge drop was possible because the price of Singapore kerosene-type jet fuel averaged $64.22 in U.S. dollars per barrel from November 2008 through January 2009.

That's down from an average of $115.92 per barrel for the prior three-month period.

The surcharge will be progressively reduced as the price of fuel decreases and will be eliminated when the price of Singapore kerosene stays below the benchmark of $60 U.S. per barrel, according to Japan Airlines.

The fuel surcharge applied to tickets issued from July to September 2009 will be reviewed based on the average price of fuel for February to April 2009.

JAL originally introduced the fuel surcharge on international tickets in February 2005 in response to a rise in the cost of jet fuel.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.