Airlines set to adjust costs due to Middle East conflict


Taking off: Local airlines indicated they will increase fuel surcharges in stages over the next few weeks.

PETALING JAYA: Air travellers could soon be paying a bit more for their flight tickets on local airlines.

Owing to the recent developments in the Middle East, local carriers have also adjusted their fuel surcharges to cushion the impact of rising fuel costs.

The move comes as several airlines across the wider Asia-Pacific region have also reportedly ­started to increase fares as jet fuel costs rise.

A Malaysia Airlines memo dated March 9 stated that the increase in fuel surcharge costs would be done in phases.

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Phase 1, effective yesterday, is applicable to all points of sale except for Japan, South Korea, Taiwan, Hong Kong and the Philippines.

Phase 2, which takes effect from March 25, is applicable to Japan, South Korea, Taiwan, Hong Kong and the Philippines.

It applies to all tickets issued on or after the date.

According to the same memo, the fuel surcharge for domestic flights is set at RM36 for business class seats and RM18 for economy class seats.

Flights from Malaysia to Asean destinations have a surcharge of RM60 for business class and RM45 for economy class, while surcharges for routes to the Middle East (excluding Qatar) and South Asia are priced at RM75 and RM60 respectively.

For flights to North Asia (excluding Japan) and Greater China, the surcharge is RM90 for business class and RM80 for economy, while surcharges for flights to Australia, New Zealand and Europe are RM130 and RM110 for business and economy class respectively.

Flights from Malaysia to Qatar will see a surcharge of RM823.62 (US$210) for business class and RM431.42 (US$110) for economy class.

The surcharges also apply to flights from London and Paris to Kuala Lumpur and destinations in Peninsular Malaysia, Sabah and Sarawak; as well as flights from the Philippines to Malaysia and other Asean countries.

It also applies to flights from Hong Kong, South Korea and Taiwan to Malaysia and Asean from March 25.

“Our operations remain fully intact, with flights to and from Europe and across our global network continuing to perform with strong operational reliability.

“Safety remains our highest priority, and we remain firmly committed to maintaining the standards that define the Malaysia Airlines experience,” read the memo.

It was also reported that Firefly, a unit of Malaysia Aviation Group Bhd, will adjust fuel surcharge prices in stages, with Phase 1 beginning yesterday and Phase 2 effective from March 25, across all points of sale.

A Batik Air memo also notified of increases in fuel surcharges for all domestic and international routes in phases.

The new surcharges effective yesterday included all domestic flights (RM50), Malaysia to Asean destinations (RM80), Malaysia to Australia (RM100) and Malaysia to the Middle East, South Asia and Central Asia (RM80).

Surcharges for flights to China and Taiwan are priced at RM90.

A new fuel surcharge of RM90 will also apply for flights to Hong Kong, South Korea and Taiwan beginning March 25.

Industry insiders said fuel ­prices at both Kuala Lumpur International Airport (KLIA) Terminal 1 and Terminal 2 have almost doubled in recent weeks.

“It was at RM2.33 per litre from March 3 to March 9, before surging to RM4.23 per litre beginning yesterday and lasting till March 16.

“This reflects an almost 83% increase in fuel costs borne by airlines,” said a source, noting that this applied to all airlines at KLIA Terminal 1 and KLIA Terminal 2.

The same source said carriers are still subsidising the fares on average despite the fuel surcharge prices.

“The small adjustments cannot cover our operational costs,” said the source.

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