Japanese carriers boost fares due to high fuel costs
Mon, Aug 18, 2008
AFP
TOKYO, Aug 18, 2008 (AFP) - Japan Airlines and All Nippon Airways on Monday announced plans to hike their air fares on some international routes as they struggle to cope with the soaring cost of jet fuel.
Japan Airlines (JAL) plans to raise fares from Japan to the Americas and Hawaii by 10 percent. Ticket prices on routes to Africa, Asia and the Middle East will go up by five percent from October 1, subject to government approval.
All Nippon Airways (ANA), Japan's second largest carrier behind JAL, will increase its fares for flights to North America, including Hawaii, by 10 percent from October 1. Tickets on routes to Southeast Asia, India, China, Korea, Guam, the Middle East and Africa will rise by five percent.
ANA also plans to increase its fuel surcharge due to the ongoing rise in the price of kerosene.
Soaring fuel costs and weaker economic growth are piling the pressure on airlines around the world.
Japan's carriers have not been immune to the surge in jet fuel prices, although ANA is in better shape than many other major airlines. It posted a 10.5 percent rise in first-quarter operating profit last month.
JAL, which is recovering from a period of financial turbulence, returned to an operating profit in the three months to June as route cuts and layoffs helped to offset jet fuel costs.