ANA to Revise Fuel Surcharge on International Cargo

TOKYO August 20, 2007 - ANA today applied to Japan’s Ministry of Land, Infrastructure and Transport to revise its surcharge on international cargo from October 1 (Monday) this year.

The revision comes in response to the rise in the price of Singapore kerosene since February this year. ANA regrets that despite constant efforts to reduce costs and secure greater operating efficiencies, it must ask its valued customers to once again share the increased cost burden.

The surcharge will remain at the revised level until December 31, 2007, and is based on the three month average price of Singapore kerosene from May to July this year, as reported by the US Department of Energy. At present it is trading at US$85 per barrel and since August has been at an historical high.

Until now, the surcharge had applied to all routes regardless of distance, however, from October it will be set according to short and long haul criteria, with flights to Korea occupying their own category.

The decision to keep the fuel surcharge at the revised level for three months, and to revise it every three months thereafter, was taken for reasons of simplicity.  During that period it will not be changed to reflect movements in the Singapore kerosene market.  The next revision, coming into force on January 1, 2008, will be based on the average market price of Singapore Kerosene for the three months from August to October, 2007.  The revision on April 1, 2008, will be based on the average market price from November, 2007, to January, 2008, and the July 1, 2008, revision will be based on the three months from February to April, 2008.

Similarly, the surcharge will be reduced if the average market price of Singapore kerosene falls below US$80 per barrel for three consecutive months, and thereafter as the market price continues to fall, measured in units of US$5.  Likewise it will be discontinued completely if the average market price drops below US$30 per barrel for three consecutive months.  Please refer to the chart below for details.