S. Korea's two airlines to raise international fares

South Korea's two flag carriers Korean Air and Asiana Airlines said Friday they will raise their passenger fares on international flights next week to offset higher fuel costs and inflation.

Korean Air said it will increase international passenger fares by up to 5.7 percent starting Monday, in line with soaring oil prices and inflation. Asiana Airlines said it will raise airfares by up to 6 percent, effective Monday.

The price of Dubai crude, South Korea's benchmark, hovers above US$60 a barrel, causing a surge in the country's oil bills. South Korea, the world's fourth-largest crude buyer, relies entirely on imports for its oil needs.

The planned fare increase comes after the government raised its cap on international passenger airfares a week ago due to such external factors as soaring oil prices.

"We decided to raise international fares because of higher fuel costs in line with the government's new ceiling," a Korean Air official said.

Korean Air's earnings dropped 17.7 percent in the July-September period from a year ago to 126.8 billion won ($135.2 million). Asiana Airlines' third-quarter net profit reached 43.6 billion won, a turnaround from a shortfall of 52.2 billion won a year earlier.

Seoul, Dec. 8 (Yonhap News)