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China's air carriers raise surchage as fuel cost climbs
By Wang Qingchu |
October 27, 2010, Wednesday
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Online Edition
Online Edition
DOMESTIC airlines have raised jet fuel surcharges on domestic routes, after the National Development and Reform Commission, the country's top economic planner, increased the jet fuel prices.
Based on the current fuel cost and rate, the surcharge will be increased from 40 yuan(US$6) to 70 yuan per ticket for domestic routes longer than 800 kilometers, and from 20 yuan to 40 yuan for routes shorter than 800 kilometers -- the biggest hike since the NDRC reinstated the fuel surcharge last November, China Business reported today.
The NDRC raised the aviation fuel price by 220 yuan to 5,690 yuan per ton on Tuesday in tandem with the recent climb of crude oil prices in international markets, according to a notice issued on Monday.
Some domestic airlines have adjusted the fuel surcharge from today, including Air China, China Southern Airlines and China Eastern Airlines.
Airlines will be the biggest beneficiary of the surcharge hike as they expect to see a major profit increase, analysts said.
Several Shenzhen-based airlines said the adjustment was within their expectation and the fuel cost hike will be offset by the strong demand.
Based on the current fuel cost and rate, the surcharge will be increased from 40 yuan(US$6) to 70 yuan per ticket for domestic routes longer than 800 kilometers, and from 20 yuan to 40 yuan for routes shorter than 800 kilometers -- the biggest hike since the NDRC reinstated the fuel surcharge last November, China Business reported today.
The NDRC raised the aviation fuel price by 220 yuan to 5,690 yuan per ton on Tuesday in tandem with the recent climb of crude oil prices in international markets, according to a notice issued on Monday.
Some domestic airlines have adjusted the fuel surcharge from today, including Air China, China Southern Airlines and China Eastern Airlines.
Airlines will be the biggest beneficiary of the surcharge hike as they expect to see a major profit increase, analysts said.
Several Shenzhen-based airlines said the adjustment was within their expectation and the fuel cost hike will be offset by the strong demand.
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