Surging oil prices causes surcharges for China’s Airlines

The fluctuating and soaring oil prices pushed airline companies in China to augment their fuel surcharges to domestic routes to help compensate on cost pressure in the middle of continuous rise in oil prices. Air China, China Eastern Airlines and other Chinese carriers raised the fuel surcharge to 110 yuan (US$16.81) from 90 yuan for domestic flights of more than 800 kilometers, while rates for shorter distance have been marked up to 60 yuan from 50 yuan.

Fuel alone cover for 40 percent of Chinese airlines’ operating costs, and it’s been the second time this year that surcharges has been raised, and if fuel hike continues many industry executives, including Li Jun, deputy general manager of China Eastern, foresee of a negative impact on carriers if oil prices continued their uptrend.

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