Several airlines, including national carrier Air China, said they will raise their fuel surcharges on domestic flights from Sunday as the conflict in the Middle East drives up oil prices globally.
Air China, China Southern and its subsidiary Xiamen Airlines said in statements that they will increase surcharges on flights of up to 800km by 60 yuan (RM0.35), and 120 yuan for longer flights. Spring Airlines and Juneyao Airlines also announced fuel surcharge hikes.
International flights will be subject to the system’s calculations, according to statements issued on Wednesday that did not mention the conflict.
The move comes as the situation in the Middle East, and Iran’s effective closure of the crucial Strait of Hormuz, have sent crude prices soaring.
A barrel of Brent oil, the benchmark reference for energy markets, has risen to around US$100 since the United States and Israel attacked Iran on Feb 28, leading Iran to retaliate against oil installations in several Gulf states.
Hong Kong carrier Cathay Pacific ramped up its fuel surcharge on all flights last month by 34% as a result of the conflict.
Several other airlines, including Air France-KLM, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices.
Many airlines have also stopped serving destinations in the Middle East over security concerns.
Analysts have said that, while carriers all hedge a portion of their fuel costs, their margins could still be affected.
Chinese carriers transported around 770 million passengers in 2025, an increase of 5.5% on the previous year, according to official reports, while international passenger traffic jumped by 21.6%.
Passenger traffic was expected to rise to 810 million, according to the Civil Aviation Administration of China. — AFP
