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Airlines to raise jet fuel surcharges
Latest Updated by 2006-09-28 09:49:05
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China's three biggest airlines announced yesterday they will raise jet fuel surcharges up to 50 percent on some international routes starting on October 1, the latest move to cover losses from surging oil prices.

Fuel surcharges on airfares from China to Asian countries like Japan, South Korea and Southeast Asia will cost US$40, up from US$25, China Southern, China Eastern Airlines and Air China Ltd, said in a statement yesterday.

The extra fee on long-haul flights to Africa, America, Australia, Europe or the Middle East will increase 50 percent to US$60 per flight per person, the carriers said.

The surcharge on flights from the mainland to Hong Kong and Macau remains unchanged at US$15.

Although global oil prices have dropped about 20 percent in the past two months, domestic jet fuel prices are unchanged at a historic high of more than 6,000 yuan per ton, pressing carriers to seek a higher surcharge, industry analysts said.

Chinese carriers last raised surcharges on international flights in July. They almost doubled surcharges on domestic flights from this month.

China Southern Airlines, the nation's biggest carrier by fleet size, lost 825 million yuan (US$104.3 million) in the six months ending June 30.

China Eastern Airlines lost 1.46 billion yuan during the same period.

The Shanghai-based carrier said fuel costs accounted for about 40 percent of its total operating costs, up from more than 20 percent two years ago.

Editor: Yan

By: Chen LiyingSource: Shanghai Daily web edition
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