SOUTH KOREA: Korean sees crude prices at US$75/bbl in ’09

Korea Air Lines, the world’s largest cargo airline, said it expects US crude oil prices to average US$75 a barrel in 2009,down from US$99.75 a barrel in 2008. As a result, the country’s two carriers, Korean Air and its smaller rival Asiana Airlines said last week they would abolish fuel charges for Korea-outbound international passenger […]


Korea Air Lines, the world’s largest cargo airline, said it expects US crude oil prices to average US$75 a barrel in 2009,down from US$99.75 a barrel in 2008.

As a result, the country’s two carriers, Korean Air and its smaller rival Asiana Airlines said last week they would abolish fuel charges for Korea-outbound international passenger flights from 1 March to 30 April, but Korean Air said surcharges on cargo will remain at 30 won (US$0.22) per kilometre, the lowest level of fuel charges applied.

Korean has a benchmark of US$1.40 per gallon before the surcharges are scrapped for cargo, while the passenger level sits at US$1.50 per gallon.