JAL to Decrease International Cargo Fuel Surcharge

Japan Airlines has filed with the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT) for a decrease in fuel surcharge for international cargo flights departing Japan, with effect from April 1, 2009.

The international cargo fuel surcharge on long-haul international routes for flights departing Japan will decrease from 115 yen to 31 yen per kg. In the case of medium-haul international routes, the surcharge will decrease from 99 to 27 yen per kg, and on short-haul routes from 83 yen to 23 yen per kg, representing an overall reduction of up to 27% on all routes.

In addition, JAL has also filed with the MLIT to revise the procedure of setting its fuel surcharge levels. At present, adjustments are made 4 times a year (once every three months) using an index calculated from a three-month average fuel price of Singapore kerosene reported by the U.S Department of Energy (DOE).

Starting from April 1, 2009, JAL will adjust its fuel surcharge levels on a monthly basis by using the one-month average fuel price of Singapore kerosene of the month before last. As the average fuel price of Singapore kerosene in February 2009 was US$52.77 per barrel, the benchmark fuel price used for calculation of the fuel surcharge level in April will be US$50.00 per barrel. 

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