By Lee Hyo-sik
Staff reporter

Korean Air, the nation’s largest air carrier, will hike its international airfares by up to 10 percent next month capitalizing on surging overseas travel demand by Koreans amid improving economic conditions and the strengthening of the local currency.

Asiana Airlines and low budget carriers are also expected to follow suit.

According to the Ministry of Land, Transport and Maritime Affairs Tuesday, Korean Air informed the ministry of its decision to increase its airfare between Incheon and destinations in North America, Europe and Oceania by 5 to 10 percent in August.

Flights bound for the United States and Canada will cost travelers 5 percent more, while those wanting to travel to Spain and other European countries, as well as Australia and New Zealand will have to pay 10 percent more.

For instance, first-class passengers on flights between New York and Incheon will pay 10.6 million won for a round-trip ticket, up 5 percent from the current 9.77 million won. First-class airfare between Incheon and Paris will increase by 10 percent to 9.33 million won from 8.48 million won.

The air carrier can raise airfares on these routes at its own discretion because it is required only to report price hikes to the government.

But if the airline firm wants to raise ticket prices for flights bound for China, Japan and Southeast Asia, it has to obtain prior permission from the ministry.

In June last year, both Korean Air and Asiana Airlines raised their international airfares to North America, Europe and Oceania by up to 15 percent. But those bound for other destinations have been frozen since 2006 as the government has not allowed any increase in prices.

“We have decided to boost ticket prices for some of our international routes by 5-10 percent next month to deal with growing fuel and other operating costs. Additionally, we haven’t been able to reflect the overall consumer price growth in our airfares over the past few years,” a Korean Air spokesman said.

He said that despite the rise in ticket prices, those who plan to travel to Europe and Australia will not likely pay substantially more, with the airline providing a range of discounts.

“Travelers bound for European and Oceania will not be affected much by the upcoming price increase. But those who go to North America will pay 5 percent more for tickets,” the official said.

Asiana Airlines has not yet decided whether to follow the footsteps of its larger rival. “We are contemplating many options at the moment. We will take a wait-and-see approach for the time being and then decide whether to raise airfare or not,” an Asiana Airlines spokesman said.

Early this month, Korea’s two national carriers hiked the fares by 10 percent on flights between Jeju and other domestic cities on Friday and weekends in time for the summer vacation season.