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The Honolulu Advertiser
Posted on: Tuesday, July 28, 2009

JAL president said airline considering resuming fuel surcharges

Advertiser Staff

A top executive of Japan Airlines Corp. said the carrier may resume fuel surcharges starting in October due to an increase in the price of jet kerosene.

The carrier, which removed passenger surcharges this month after introducing them in 2005, will considering restarting the levy based on a three-month average of jet fuel prices, President Haruka Nishimatsu told reporters today in Tokyo.
High fuel surcharges are one of the factors that deter Japanese visitors from traveling to Hawaii.
Japan Air forecasts it will lose $667 million for the fiscal year ending in March, its second straight loss, as passenger demand tumbles. All Nippon Airways Co., Asia’s second-largest carrier by sales, may also restart fuel surcharges, President Shinichiro Ito told reporters in Tokyo yesterday.
“Given the average price of jet kerosene from May to July we can’t do nothing,” Nishimatsu said. “We’re studying our next move.”The fuel has averaged $70.60 a barrel from the start of May until yesterday, a 28 percent increase. Jet kerosene traded at $73.80 in Singapore yesterday.
The carrier’s current fuel surcharge of zero is based on the average price of $54.95 a barrel from February through April.
Japan Air’s fuel surcharge for one-way trips between the U.S. and Japan would be about $85 if jet kerosene averaged between $70 a barrel and $80 a barrel, according to a table from the company.