Airlines face rocket-up fuel pressure
The continued rise of crude oil prices make the rise of fuel surcharge fees inevitable for Mainland Chinese airlines,China Youth Daily reported.
The Airlines’ applications to raise fuel surcharge fees are currently under review, confirmed the vice-minister of China General Administration of Civil Aviation.
Four out of five listed airlines in China have forecasted a loss for the year. As a result of sky high oil prices, airlines have suffered from a loss totaling 25.7 million yuan, a 19.9 million yuan increase from 2005.
The current fuel surcharge fee would be effective until 10 October, a source said.
As early as May, the three biggest Mainland airlines had been planning to raise fuel surcharge fees due to rising oil prices. Fuel surcharge fees would be raised from 30 yuan to 50 yuan for routes shorter than 800 km and from 60 yuan to 100 yuan for routes longer than 800 km.
However, the raising of fuel surcharge fees may not relieve the burden on the airlines. Coal oil prices for aviation may again be raised next month. The coal oil prices have risen by 16.9 percent in the first half. If it is raised again next month, the prices would have been tripled since last year.
After the potential adjustment of fuel surcharge fees, the State Administration of Civil Aviation and State Development and Reform Commission will review the current fuel surcharge fee policy and the prices for crude oil for aviation.