Oman Air adds war risk and fuel surcharges on cargo

State-run Oman Air will introduce fuel and war risk surcharges across its cargo network from March 18.

The move comes amid continued volatility in global aviation fuel markets and rising insurance costs linked to operations in high-risk or conflict-affected regions, the carrier said in a statement.

The war risk surcharge will be applied on a per kilogramme basis, calculated using the chargeable weight stated on the master air waybill. Meanwhile, the fuel surcharge will be reviewed weekly in line with movements in global fuel prices.

The surcharges will apply to shipments originating from, destined for, or transiting through the Oman Air cargo network.

The airline’s cargo division will regularly review the surcharges and adjust them, if necessary, in line with changes in fuel markets, insurance costs and the operating environment, the statement said.

Jet fuel prices jumped from roughly $85-$90 a barrel before the Iran conflict began to as high as $150-$200 by March 8, according to the International Air Transport Association. 

The global average jet fuel price has increased more than 58 percent week on week, it said.

Further reading:

• Oman sets up food depots to try to circumvent Iran war
• Oman contends with Iran war passenger backlog
• Oman says latest attacks not affecting investment projects

Brent futures prices jumped by 2.8 percent to $103 a barrel by 05.10 GMT on Tuesday, while US West Texas Intermediate crude rose by 2.5 percent to $95.87, driven by supply constraints amid the closure of the Strait of Hormuz.

Muscat has become a regional hub for repatriation flights and Oman Air has been one of the busiest Middle East carriers throughout the ongoing conflict, providing buses as part of evacuation routes from the UAE. 

The national flag carrier has seen just 1.4 percent of all its flights cancelled since February 28, according to data from aviation analytics company Cirium.