Chinese language airways to use gasoline surcharge from Friday as oil costs rise By Reuters
© Reuters. FILE PHOTO: China Eastern Airlines aircraft parked on the tarmac at Hongqiao International Airport in Shanghai after the coronavirus disease (COVID-19) outbreak in China on June 4, 2020. REUTERS / Aly Song
BEIJING / SYDNEY (Reuters) – Chinese airlines will introduce a fuel surcharge on domestic routes for the first time in more than two years starting Friday as oil prices rise.
The move comes as the oil benchmarks are trading near their highest level in years. is now trading above $ 80 a barrel, up from about $ 20 a barrel hit in the early days of the COVID-19 pandemic.
The fuel fee also comes with airlines facing already low demand for domestic travel as China battles the recent COVID-19 outbreak that has spread to much of the country.
China’s top three airlines posted larger quarterly losses last week than the previous quarter as the resurgence of local COVID-19 cases caused the sharp drop in domestic travel, with international borders still closed.
China Eastern Airlines (NYSE 🙂 announced Thursday that it would charge 10 yuan ($ 1.56) per passenger for shorter routes of less than half a mile and 20 yuan for longer routes of more than half a mile.
Air China (OTC :), China Southern Airlines and smaller counterparts have announced similar surcharges in the past few days.
They abolished domestic fuel surcharges in January 2019 after oil prices fell, pushing fuel purchasing costs below government-set levels.
($ 1 = 6.3937 renminbi)
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