The country's flagship carrier Korean Air on Thursday said that its international fuel surcharge for tickets issued in August will fall five levels, from Level 19 in July to Level 14.
The airline will charge between 35,200 won (US$24) and 259,200 won each way, depending on the distance, down from between 46,400 won and 344,000 won in July.
For routes to New York, Boston and Atlanta, the surcharge on a round-trip ticket will fall by 169,600 won to 518,400 won. On shorter routes, such as Fukuoka in Japan and Qingdao in China, the round-trip charge will decline by 22,400 won to 70,400 won.
The reduction reflects a decline in the average price of Singapore jet fuel, the benchmark used by South Korean airlines. The average fell 16.2 percent to $119.06 per barrel between June 16 and July 15, from $142.09 during the previous calculation period.
A Korean Air staffer said ahead of the announcement that fuel surcharges are determined based on the average price through the 15th of each month, rather than daily fluctuations in international oil prices.
August will mark the third consecutive monthly reduction since fuel surcharges reached a record-high Level 33 in May. Even after falling to Level 14, the August charges will remain roughly twice as high as those imposed in March, before the impact of the U.S.-Iran war was fully reflected in aviation fuel prices.
The lower surcharges are already showing signs of stimulating overseas travel demand.
Budget travel agency Yellow Balloon Tour said bookings for overseas package tours departing in July and August increased 61.2 percent after the July fuel surcharge reduction was announced.
It compared bookings made between June 16 and July 9 with those made between May 23 and June 15.
Japan recorded the largest increase, with bookings surging 174.5 percent. Viet Nam followed with a 73.4 percent increase, while bookings for China rose 62.5 percent.
The figures suggest that lower fuel surcharges are acting as a trigger for travelers who had postponed making reservations because of higher costs. However, the strongest response has come from short-haul travel, where the actual reduction in fuel surcharges is smaller than on long-distance routes.
The immediate impact of the August reduction on peak summer passenger numbers may also be limited, as many travelers have already booked their flights.
"July and August see the largest number of passengers, but many of them have already purchased their tickets," a Korean Air official said.
The trend reflects a broader shift among South Korean travelers toward shorter, more frequent and value-conscious trips in 2026.
A Booking.com survey of 32,800 travelers worldwide including 800 South Koreans, found that Korean respondents traveled within Asia an average of 1.95 times, compared with the global average of 1.38 times. The company described the pattern as a preference for traveling “short and often” rather than taking a single extended trip.
The won has recently strengthened to below 1,500 against the dollar but remains weak, with the exchange rate standing at around 1,478 won per dollar on Thursday. The exchange rate continues to raise the cost of hotels, meals and other expenses overseas, particularly in the United States and Europe.
Renewed instability in the Middle East, including the latest closure of the Strait of Hormuz, could further strengthen demand for shorter and less expensive trips closer to home. The August reduction could provide another boost to late-summer travel and bookings for the Chuseok holiday period.
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