The nation's airlines are set to remove fuel surcharges with oil trading around a 12-year low, ending a decade of high jet kerosene costs that had added as much as ¥66,000 to the price of a round-trip ticket to the U.S. or Europe.
The current price of Singapore kerosene is below the minimum level for adding surcharges, Hiroshi Hasegawa and Osuke Itazaki, analysts in Tokyo at SMBC Nikko Securities Inc., wrote in a Jan. 15 report.
Airlines are cutting fuel surcharges as oil prices slump amid China's economic slowdown and an expected bump in supply as Iranian sanctions are lifted. The surge in prices since 2004 had turned fuel into airlines' single largest cost.