Chinese airlines are raising domestic jet fuel surcharges by up to 50 percent from this week in an effort to mitigate the increasing strain of soaring oil prices.

According to Reuters, regulators approved a CNY60 yuan surcharge in domestic jet fuel surcharge to increase to CNY80 (USD$11.67). This surcharge is applicable to flights travelling 800 km or less, and for flight travelling longer the surcharge is CNY150 from CNY100.

“The hike in the fuel surcharge is helpful but we might still suffer as air traffic demand is falling and airlines have to offer discounts to attract customers,” said Luo Zhuping spokesman for China Eastern.

This move follows the increase of China’s ex-refinery jet fuel prices by CNY1,500 per tonne in June due to the southwest earthquake that hit in May leading to lack of domestic passenger volume.

Although the surcharge is still not confirmed to give a profit for the full year, with dependence on government subsidies due to earthquake relief efforts by airlines.

A few airline executives have deemed the Beijing Olympics as a double-edged sword with the global economy slowing down due to strict airport security checks affecting international outbound and inbound travel through China.

Other Chinese airlines such as Air China and China Eastern Airlines have been trying to get in on the fuel surcharge increase already in motion by other airlines including China Southern Airlines.

However, China Eastern Chairman Li Fenghua said earlier this week that profits are expected to come for the carrier in the first half due to high passenger volume from January to April.

Source = e-Travel Blackboard: J.L

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