China's aviation industry suffered a loss of 2.57 billion yuan (US$321 million) in the first half of this year, China Business News reported today. The deficit is mainly attributed to soaring oil price, according to the country's Administration of Civil Aviation.

Several airline companies have appealed the relevant authorities to raise oil surcharge for the third time, which may adjust the current 30 yuan within 800 kilometers to 50 yuan, and that for a distance longer than 800 kilometers from 60 yuan to 100 yuan, the newspaper said.

In the second quarter, the whole industry posted a loss of 430 million yuan, 22.9 percent more than a year ago, while the cost surged 17.9 percent, compared with the same period a year ago.

The number of passengers carried in the first half reached 73.99 million, 17.5 percent higher than the first half of 2005. The total amount of the cargo transport also reached 1.56 million tons, 11.5 percent more than a year ago, the newspaper said.

The National Reform and Development Commission, China's top planning body, has raised the price of aviation fuel twice with a total increase of 730 yuan a ton. The current price is 4,920 yuan a ton for international lines and 5,220 yuan for domestic lines.

Editor: Yan