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JAL joins trend to cut fuel surcharge prices

Date Posted: 2009-02-26

Air fares on Japan Air Lines will fall April 1st as the airline joins other international carriers in slashing fuel surcharges.

The airline will lower fuel surcharges on international flights between 75% and 92%, thanks to lower oil prices. Japan Air Lines says surcharges will drop to from 2,500 to 200 on Japan-Korea flights, and from 22,000 to 3,500 on flights to the United States.

JAL says jet fuel prices have plummeted from $116 a barrel to $64 in recent months, leaving the airline in a position to make positive change. JAL had implemented fuel surcharges in February 2005 in response to rising oil costs.

British Airways, Malaysia Airlines and Thai Airways are also lowering fuel surcharges as competition stiffens and the recession climate increases. JAL Group is projecting a 34 billion loss for the fiscal year ending next month, down from a 16.9 billion profit the previous year. JAL says domestic passenger traffic is also down significantly.

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