China’s airlines hike fuel surcharge

28th Jul 2006

China’s Airlines are still hoping to increase fuel surcharges to reduce their losses, according to Xinhua news wire. Sources from Shanghai civil aviation department disclosed that the fuel surcharge for the flight route between China and Japan has been approved to increase, for the flights to the United States is increasing, and for flights from the mainland to Hong Kong has been increased again.

Though the fuel surcharge paid by passengers of international flights has offset part of the operation cost of aviation companies, the pressure on aviation companies is still heavy due to continuous hike of prices of oil on the international market. According to figures published by the Civil Aviation Administration of China (CAAC), loss of aviation companies reached 2.57 billion yuan (US$321.8 million) in the first half of this year.

Therefore, approved by competent authorities, the fuel surcharge for Shanghai Airlines’ flights to Japan has been raised from US$12 to US$26 per route as of June 1, and has further been increased by more than 20 yuan this time. The fuel surcharge of East China Airlines’ flights to Japan has also been increased by 40-50 yuan per route.

Some foreign airlines have also increased their fuel surcharge. Dragonair will increase its fuel surcharge for flight routes to Southeast Asia as of August 1. The fuel surcharge for flight from Shanghai to Hong Kong has been increased from original 113 yuan to 121 yuan, and for flight from Shanghai to Tokyo and Osaka via Hong Kong, from 226 yuan to 240 yuan. Malaysia Airlines has also increased its fuel surcharge for flights from Shanghai by 30 yuan per route.


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