Airlines raise jet fuel charges
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Shanghai Daily, August 2, 2011
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Major Chinese airlines raised fuel surcharges on domestic routes on Tuesday. |
China Eastern Airlines and most Chinese carriers raise fuel surcharges on domestic routes Tuesday after the country's top economic planning body increased ex-factory jet fuel price on Monday.
The airlines raise the surcharges from 140 yuan (US$21.74) to 150 yuan per passenger on domestic routes longer than 800 kilometers, while those on other routes were unchanged at 80 yuan, according to online travel agency Ctrip.com.
The National Development and Reform Commission yesterday raised ex-factory jet fuel price to 7,725 yuan per ton from 7,640 yuan. The increase also drove up jet fuel price at which domestic carriers buy from China National Aviation Fuel Group Corp, the country's monopoly jet fuel supplier, to 7,785 yuan from 7,700 yuan.
"The jet fuel price will be more sensitive to the market change after the commission adjusted the price monthly, which will also lead to a more flexible and reasonable change in fuel surcharges," said Shao Jihong, director of the air ticket department of Ctrip.com.
The jet fuel cost, accounting for about 40 percent of Chinese airlines' total expenses, is calculated at the weighted average of ex-factory jet fuel price and imported price of fuel.
Although the global oil price has been falling, Singapore jet fuel spot price has kept rising, and the NDRC said on its website the after-tax import cost of jet fuel rose to 7,768 yuan.
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