PNG Air Introduces K120 Fuel Charge as International Oil Costs Surge

A new K120 fuel surcharge will be added to PNG Air domestic fares from October 5 as the airline grapples with a steep rise in the cost of aviation fuel on international markets.

PNG Air said the charge would apply to both adults and children travelling on its domestic network, with tickets purchased or reissued from Monday carrying the new surcharge.

PNG Air Introduces K120 Fuel Charge as International Oil Costs Surge/PNG Air Photo

The airline's decision follows a period of intense volatility in the global energy market, with disruptions to oil supplies pushing up the cost of jet fuel.

The Strait of Hormuz has emerged as a major point of disruption amid the continuing conflict involving Iran, affecting the movement of oil and other energy products.

According to the International Energy Agency, the scale of the supply disruption represents the largest interruption recorded in the global oil market.

The higher fuel bill is not the only expense confronting PNG Air. The carrier said increased freight charges, supply difficulties and financing costs were also adding to the cost of maintaining its services.

At the same time, the end of the government fuel subsidy has removed assistance that had previously helped cushion domestic aviation against fuel price increases.

Other airlines in the region have also been affected, with Qantas and Air New Zealand among carriers to increase fares as fuel expenses climb.

PNG Air said it had carried much of the additional cost for some time before deciding that an adjustment to the surcharge was necessary.

Chief executive officer Brian Fraser said air travel remained an important link between communities across the country.

"For many Papua New Guineans, flying is not a luxury - it is how families reunite, patients reach care and our provinces stay connected," said PNG Air Chief Executive Officer, Brian Fraser. "We have absorbed these rising costs for as long as we responsibly could, but this global crisis has left us no alternative if we are to keep flying safely and reliably."

PNG Air said it would keep the surcharge under review, particularly if international fuel prices begin to ease.

The airline also thanked its customers for their patience and continued loyalty during the period of higher operating costs.