Fuel surcharges soar, but not enough to cover costs, airlines say

Taipei, April 7 (CNA) Fuel surcharges on international flights departing from Taiwan increased by more than double on Tuesday, but the country's major carriers said they would still have to absorb most of the recent increase in jet fuel prices.

The surcharge for short-haul routes has increased from US$17.5 to US$45, while long-haul routes jumped from US$45.5 to US$117, the Civil Aviation Administration (CAA) said Tuesday.

Under existing regulations, short-haul routes cover flights within Asia (excluding India and the Middle East), while long-haul routes include destinations in Europe, the Americas, Africa, Oceania, Antarctica, India, and the Middle East.

The CAA said the adjustment follows a recent surge in aviation fuel prices, based on the latest pricing announced by CPC Corp., Taiwan, which showed jet fuel rising from US$0.583 per liter on Jan. 1 and US$0.6126 per liter on March 1 to US$1.2816 per liter on April 1.

Taiwan's major airlines said the spike in March meant they would absorb most of the jet fuel price increase despite the fuel surcharge hikes.

China Airlines (CAL) said that its per-passenger fuel costs have risen to US$524.03 for long-haul flights, from US$168 in January, and to US$112.99 for short-haul routes.

After factoring in the approved surcharge, the airline is still absorbing about 77.67 percent of the increased costs for long-haul routes and 60.18 percent for short-haul, it said.

EVA Airways reported larger increases, with per-passenger fuel costs rising to US$774.09 for long-haul routes, from US$249 in January, and to US$129.53 for short-haul routes.

Even after applying the surcharge, the carrier is covering around 85 percent and 65 percent of the increased costs, respectively.

Starlux Airlines said its added fuel costs per passenger have risen to US$258.69 for long-haul flights and US$59.92 for short-haul flights, with the airline absorbing roughly 64 percent and 42 percent of the increases after the surcharge is applied.

Airlines have already updated their websites to reflect the new rates for all international tickets issued as of Tuesday.