Taiwan airlines to raise international fuel surcharges Sept. 7

Taipei, Sept. 1 (CNA) Taiwan's airlines will raise their fuel surcharges on international passenger flights from Sept. 7 due to higher aviation fuel prices, the Civil Aviation Administration (CAA) said Tuesday.

The surcharge will be increased to US$32.50 from the US$30 surcharge in August for short-haul routes and to US$84.50 from the previous US$78, according to the CAA.

Fuel surcharges have fluctuated amid volatility in international crude prices since the United States and Israel attacked Iran in late February.

Prior to the war, the surcharges were US$17.50 for short-haul routes and US$45.50 for long-haul routes, but they soared to US$45 and US$117, respectively, in April and May.

They then fell as international crude prices eased but have rebounded in the past two months.

Short-haul routes cover destinations in Asia, excluding India and the Middle East, while long-haul routes include Europe, the Americas, Africa, Oceania, Antarctica, India and the Middle East.

Taiwan's fuel surcharge mechanism, established by the CAA and local airlines in 2005, is based on the benchmark price of international aviation fuel announced by state-owned oil and gas company CPC Corp., Taiwan.

Under the mechanism, no surcharge is charged when the benchmark price is below US$40 per barrel. A surcharge begins when the price reaches US$40 but remains below US$50, at US$5 for short-haul routes and US$13 for long-haul routes.

For every additional US$10 increase in the benchmark price, the surcharge rises by US$2.50 for short-haul routes and US$6.50 for long-haul routes.

The CAA said CPC's benchmark price for international aviation fuel is currently at US$156.79 per barrel.