Due to the rise in international oil prices and increasing aviation fuel costs, Chinese airlines are showing signs of increasing fuel surcharges. China’s “Spring Airlines” announced that it will raise domestic flight fuel surcharges starting from midnight on April 5. The industry generally expects that other airlines will also follow suit, resulting in an increase in transportation costs for people planning to travel.
Spring Airlines recently issued a notice stating that fuel surcharges for domestic flight tickets sold starting from midnight on April 5 will be increased, and the specific adjustment amount will be announced separately. For orders issued before midnight on April 5, even if the flight takes off after April 5, the fuel surcharge will still be levied according to the pre-adjusted standards.
According to a report by “Jiemian News,” the industry generally believes that this adjustment is just the beginning, and other airlines are expected to follow suit and adjust collectively.
Spring Airlines has only specified the timing of the increase and has not yet announced the specific adjustment amount. The industry speculates that it will follow the industry’s coordinated adjustment mechanism.
The ongoing Middle East conflict has led to fluctuations in international oil prices, driving up aviation fuel costs. Reports indicate that aviation fuel is a fixed cost for airlines, accounting for 30% to 40% of the total operating costs of domestic airlines and directly impacting profitability. Against the backdrop of rising oil prices, airlines’ profit margins are under significant pressure, especially for airlines operating on a low-cost model, which are more sensitive to cost fluctuations.
Several Chinese airlines including Spring Airlines, Lucky Air, China Eastern Airlines, and Longhao Airlines have previously adjusted fuel surcharges for international routes, with increases generally exceeding 50%.
The fuel surcharges for domestic flights in China are adjusted on the 5th of each month, with the current rates set at 10 yuan per person for flights under 800 kilometers and 20 yuan per person for flights over 800 kilometers.
The market believes that this wave of fuel surcharge increases for domestic flights will raise transportation costs for people planning to travel, prompting some consumers to book their tickets before the adjustment takes effect.
Industry insiders analyze that as the fluctuation in aviation fuel prices transmits to the end terminals, ticket prices will continue to face upward pressure in the foreseeable future. Against the backdrop of high volatility in international oil prices and ongoing increases in aviation costs, fuel surcharge adjustments may become the norm, and the upward trend in aviation travel costs is unlikely to reverse in the short term.