TAIPEI (TVBS News) — Taiwan will raise international aviation fuel surcharges by 157 percent starting Tuesday, the Civil Aeronautics Administration (CAA, 民航局) announced Wednesday (April 1). The dramatic increase comes as soaring oil prices driven by the Strait of Hormuz closure continue to squeeze airlines worldwide. The hikes take effect just after the Qingming Festival holiday weekend.
CAA Director-General Ho Shu-ping (何淑萍) told legislators short-haul surcharges will rise by US$27.50 (NT$880) to US$45 (NT$1,440) per ticket. Long-haul surcharges will jump by US$71.50 (NT$2,288) to reach US$117 (NT$3,744). The increases follow more than 60 percent gains in Brent crude prices since U.S. and Israeli attacks on Iran in late February prompted Tehran to close the critical shipping lane.
Transportation Minister Chen Shih-kai (陳世凱) said the surge in fuel prices has placed significant financial pressure on local airlines, and the surcharge hikes aim to ease that burden. Fuel costs now account for approximately 40 percent of carriers' operating expenses, according to market estimates. EVA Airways said it will absorb 85 percent of long-haul and 65 percent of short-haul fuel cost increases despite the approved surcharges.
Domestic routes will see an average increase of NT$97 (US$3) per ticket to cover additional fuel costs, Ho said. The Civil Aviation Operation Fund will subsidize part of the hike for flights between Taiwan proper and its outlying islands. Ho did not indicate when domestic fare increases would take effect.