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Japanese airlines mull fuel surcharge hikes due to Mideast war

Many international airlines have hiked fuel surcharges since US-Israeli strikes on Iran triggered the conflict in late February, prompting Tehran to respond by effectively closing the Strait of Hormuz, a crucial artery for global oil supplies.
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By AFP/RSS

TOKYO, April 3: Japanese airlines are considering raising fuel surcharges to reflect surging energy costs due to the Middle East war, though officials from major carriers stressed on Friday that no decisions had yet been made.



Many international airlines have hiked fuel surcharges since US-Israeli strikes on Iran triggered the conflict in late February, prompting Tehran to respond by effectively closing the Strait of Hormuz, a crucial artery for global oil supplies.


Japanese media reports this week said the import-reliant nation's biggest airlines may follow suit, and the president of flag carrier Japan Airlines (JAL) conceded that higher charges for consumers might be necessary.


Officials from both JAL and rival ANA told AFP on Friday that their firms have not officially made any decision to raise surcharges.


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But they said the charges in June would reflect shifts in fuel prices during February and March.


Speaking to reporters on Wednesday, JAL President Mitsuko Tottori indicated that the company may have to pass on additional fuel costs to consumers.


"After we carry out necessary measures on our own, like cutting costs, I believe we might have to consider steps that may bring burdens to our customers."


If fuel prices continue to rise at the current rate, JAL could face additional costs of 30 billion yen ($190 million) every month, she said.


Soaring oil prices have piled pressure onto Asian economies that depend heavily on the Middle East for fuel imports.


Airlines from mainland China, Hong Kong and Taiwan have already increased surcharges as the crisis has begun to bite.


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