Chinese airlines started their fourth-quarter operation with a good news – lower jet fuel price.
In the forth quarter, jet fuel price on the Chinese mainland was lowered to RMB7,750 ($1,138) per ton, nearly 6.9% or RMB570 ($83.7) less than in the third quarter.
As of 2007, China’s domestic jet fuel has been usually adjusted quarterly in accordance with the price fluctuation of international jet fuel.
Zhang Wei, an industry insider with the Chinese Ctrip.com website, said the cut resulted from a price drop on the international crude oil market.
Zhang Wei, said, ‘Investors are worried that demand for crude oil is becoming weak, which brings down the oil price. To the aviation industry, domestically and globally, lower oil price. ‘ He also suggest that this might be a turning point.
Fuel cost accounts the biggest part, about 50%, of the operating cost among Chinese airlines.
Source: China View