To cover up the rising fuel prices, several Chinese airlines including the Chinese national carrier, Air China
recently announced hike in fuel surcharge on all domestic routes. This is the second fuel surcharge hike in the same year. Previously the fee was increased in February.
China Eastern Airlines
increased the fuel surcharge to USD 16.8 from USD 13.8 on domestic flights that operates on 500 or more than 500 miles routes. Similarly, the airline increased the fuel surcharge to USD 9.2 from USD 7.6 on short distance flights.
Fuel accounts for approximately 40 percent of the operating costs of the Chinese airlines, thus to save its revenue from negative growth the airlines had to increase the fuel surcharge.