[photopress:air_airport_crowds_1.jpg,full,alignright]Chinese airlines said the current increase in jet fuel surcharges was not expected to bring much benefit for them.
CAAC has allowed Chinese airlines to increase surcharges to:
RMB80 (about $11.66) from RMB60 for domestic flights of 800 km or less.
RMB150 (about $22) for domestic flights longer than 800 km.
This was the fourth time that the Chinese aviation regulator has raised surcharges since August, 2005, and the second time within eight months.
Luo Zhuping, a director of China Eastern, one of the country’s major carriers, was quoted by the Guangzhou Daily as saying, ‘There is not sufficient air traffic demand now. Despite the rise in fuel surcharges, airlines will have to make more discounts in order to compete for passengers.’
Wen Shuang, of a tourism company based in South China’s Guangdong Province, said the increase in jet fuel surcharges was not expected to cause notable fluctuations to air ticket prices for tourists. He said, ‘The fuel surcharges rise, but air tickets are declining.‘
Liu Shaoyong, chairman of China Southern Airlines, noted that jet fuel costs account for more than 40% of China Southern’s total cost.
The airlines’ operation cost increased by RMB15 billion a year because of oil price rises.
Source: China View