Air China and other major Chinese carriers have raised their fuel surcharges for domestic routes for the third time this year to help offset cost pressure amid surging oil prices, the Shanghai Securities News reported on Thursday.
Carriers including China Eastern Airlines and China Southern Airlines raised the fuel surcharge to CNY140 yuan (USD$21.5) from CNY110 for domestic flights of more than 800 km (500 miles), the newspaper said.
Rates for shorter distance have been marked up by CNY80 from CNY60, it said.
The surcharge by domestic carriers came despite falling global fuel prices, after the National Development and Reform Commission decided to raise ex-factory jet fuel price, effective May 25, to CNY7,640 per tonne, up from CNY6,840.
The most recent fuel surcharge increase for domestic routes happened in April.
Fuel typically accounts for 40 percent of Chinese airlines' operating costs. Many industry executives, including Li Jun, deputy general manager of China Eastern, had warned of a negative impact on carriers if oil prices continued their uptrend.