Japan Air Lines said it will increase the fuel surcharge that travelers pay for the second time this year, a move that raises concerns with industry officials already worried about the declining number of Japanese visitors to Hawai'i.

The latest increase scheduled to take effect April 1 adds 14,000 yen — about $135 at the current exchange rate — to a one-way ticket from Japan to Hawai'i. The surcharge represents a 12 percent increase from the previous 12,500-yen surcharge that went into effect on Jan. 1.

The surcharge applies to Japan Air Lines flights operated by other airlines and its international subsidiaries Japan Asia Airways and JALways.

JAPAN TRAVELERS DROP

State tourism liaison Marsha Wienert said she understands the business decision by the airline because "the fuel costs for our airlines continue to go up and up and up."

But the fuel surcharge increase is being cited as one of several factors — including a decline in the number of airline seats — that are hampering travel from Japan to Hawai'i.

"It's a combination of fuel surcharges, decreased air seats, and the chance to visit new places closer to home," Wienert said.

She said she hopes Japan travelers — who have long made Hawai'i a favorite destination — won't let the increase deter them from vacationing here.

The state's visitor arrival data for January released last week showed Japanese travelers were the only major group of visitors to decline for the month. Visitor arrivals from Japan fell 5.2 percent, while the overall number rose 4.1 percent. For all of 2007 arrivals from Japan fell 3.5 percent from 2006.

The JAL Group requested approval from the Japanese Ministry of Land, Infrastructure, Transport & Tourism to revise the fuel surcharge placed on all international passenger tickets issued for the three-month period from April 1 to June 30.

The company cited the price of Singapore kerosene-type jet fuel as a driving force, noting that it has averaged $109.06 per barrel over the three-month period from November 2007 to January 2008.

The surcharge on a Japan-Europe ticket or a Japan-North America ticket will be 20,000 yen, up from 17,000 yen.

The airline originally introduced the fuel surcharge on international tickets in February 2005 in response to unprecedented rises in the cost of fuel. The company said the surcharge will be reduced if the price of fuel decreases, and would be canceled if the price of Singapore kerosene falls below $50 per barrel.

PASSING ON SURCHARGE

The fuel surcharge charged for tickets issued from July to September 2008 will be reviewed based on the average price of fuel for February through April 2008.

Spokesman Stephen Pearlman said the company will continue conducting 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," he said. The average price of Singapore kerosene fuel has increased by nearly US$40 per barrel during calendar year 2007.

Meanwhile, JAL last week raised its profit forecast for core operations in fiscal 2010 and released a business plan that emphasized job cuts, cost reductions and route changes.

The carrier said Friday it would cut 4,300 jobs and slim the workforce to 48,800, about 8 percent, by April next year, rather than April 2010.

The reductions will come though early retirement and natural attrition, Pearlman said.

Japan Airlines Corp. released an operating profit forecast for the fiscal year through March 2011 at $916 million, an improvement from an earlier projection of $840 million.

RESTRUCTURING AT JAL

Japan's biggest airline, and also Asia's most indebted, JAL has been trying to turn itself around through job cuts, more fuel-efficient aircraft and a focus on premium business travelers.

Soaring fuel bills, costly early-retirement packages and a tarnished image from a series of safety lapses have hurt JAL in recent years. It has struggled to win back customers who began booking with rival All Nippon Airways.

JAL is forecasting $66.8 million in net profit for this fiscal year.

The airline swung to a profit in the second quarter of 2007 after losing money for two straight fiscal years.

Earlier this month, it reported a $125 million profit for the October-December quarter, reversing a $103 million loss in the same period last year.

After helping guide JAL back to profitability, Chairman Toshiyuki Shinmachi, 65, announced that he is stepping down March 31 to make room for younger leadership.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.