TOKYO -- Higher oil prices are forcing Japan's two major airlines to increase domestic airfares by about 5 percent, effective early next year.
Japan Airlines and All Nippon Airways are discussing the increase with the Fair Trade Commission and plan to ask the Construction and Transport Ministry this year to approve the price hikes, reported the Yomiuri Shimbun Thursday.
Fuel costs have surpassed the companies' estimates by more than 50 percent, costing JAL an additional $413 million and ANA an extra $119 million in operating costs for the fiscal year.
The FTC is expected to allow the companies to raise airfares after reviewing cost calculations showing the impact of the record rise in crude oil prices.
JAL has implemented cost-cutting measures including restructuring the number of flights per route, while ANA is reducing costs by washing aircraft engines regularly to boost fuel efficiency and shutting down unnecessary engines after landing.
