Aviation fuel prices raised

China Aviation Oil Corporation (CAOC), China’s monopoly supplier of aviation fuel, has increased fuel prices for the first quarter of 2008 by US$29 per ton after a US$69 hike in November 2007, China Business Net reported (in Chinese). CAOC is allowed to adjust its price according to international levels once each quarter. Analysts say that oil price rise each additional US$14 per ton of fuel will cost domestic airlines at least US$25 million in annual profits. China Eastern Airlines board secretary Luo Zhuping said the exact influence will depend on whether the airlines will be allowed to charge customers additional fuel fees.