TAIPEI (Taiwan News) — Three Taiwanese airlines will increase fuel surcharges on international flights starting Monday, citing volatility in global oil prices.
The fuel surcharge applied by Eva Air, China Airlines, and Starlux Airlines for short-haul routes will rise from NT$433 (US$15) to NT$505. For long-haul routes, the surcharge will increase from NT$1,125 to NT$1,313, according to CNA.
While there is no universal definition for long-haul flights, but are generally those exceeding six hours in duration. They typically connect international or intercontinental destinations, according to GlobeAir.
Fuel surcharges for international flights operated by Taiwanese carriers are adjusted based on changes in international aviation fuel prices, as published by Taiwan's Chinese Petroleum Corp. According to CPC’s July pricing bulletin, the average cost of aviation fuel has reached NT$2,684 per barrel, compared to the benchmark price of NT$1,154.
China Airlines reported additional fuel costs per passenger of NT$5,527 for long-haul flights and NT$1,191 for short-haul flights. Following the surcharge adjustment, the airline will absorb 76% and 58% of the respective increases.
Starlux Airlines said the additional fuel cost per passenger amounts to NT$2,841 for long-haul and NT$561 for short-haul flights. The airline will cover 75% of the long-haul and 52% of the short-haul increases.
Eva Air reported NT$7,229 for long-haul and NT$1,209 for short-haul passengers. The carrier said it will continue to absorb 82% of the long-haul and 58% of the short-haul costs after the adjustment.
The adjustment comes amid ongoing fluctuations in international oil markets. Prices rose about 3% on Wednesday after Iran suspended cooperation with the International Atomic Energy Agency and the US reached a trade agreement with Vietnam, according to Liberty Times.
However, gains were limited by an unexpected increase in US crude inventories. Market concerns over supply disruptions in the Middle East have also eased following a ceasefire agreement between Iran and Israel.
