CHINA: China raises jet fuel price again

Chinese carriers have been hit with another price hike as government authorities raised fuel prices again last month by CNY720 (US$104.83) per ton. It is the third time fuel prices have gone up this year following a CNY 210 per ton increase in the first quarter and a CNY1,500 hike in June. China’s quarterly adjustment […]


Chinese carriers have been hit with another price hike as government authorities raised fuel prices again last month by CNY720 (US$104.83) per ton.

It is the third time fuel prices have gone up this year following a CNY 210 per ton increase in the first quarter and a CNY1,500 hike in June. China’s quarterly adjustment of jet fuel prices traditionally takes import costs into consideration, which largely has shielded airlines from the soaring international oil prices over the past two years.

China Southern Airlines is expected to be hit hardest by the domestic increaseas it flies the largest number of domestic routes followed by China Eastern and Air China.

To mitigate rising fuel expenses, Chinese carriers collectively approved an increase in domestic fuel surcharges beginning 1 July.