[Aviation News] Recently, several domestic and international airlines in China have implemented increases in fuel surcharges on international routes in response to sustained high jet fuel prices and rising operational costs. Beginning March 20, Juneyao Airlines raised fuel surcharges on China–Southeast Asia routes to CNY 400–600 per passenger, with flights to Vietnam set at CNY 400, Indonesia at CNY 600, and routes to Thailand, Singapore, Malaysia, the Philippines, and Cambodia at CNY 550. Spring Airlines adjusted fuel surcharges on select routes as early as March 11; the Shanghai–Kuala Lumpur and Shanghai–Penang routes doubled from CNY 180 to CNY 360, while routes to Japan increased by over 50%. Xiamen Airlines increased fuel surcharges on Indonesia–China routes from IDR 640,000 to IDR 736,000 (approximately CNY 290 to CNY 330) starting March 16, a rise of around 15%. China Southern Airlines has also informed its agency channels that international fuel surcharges will be adjusted in the near term.
Airlines in the Hong Kong region have faced similar cost pressures due to rising fuel prices. Cathay Pacific, HK Express, Hong Kong Airlines, and Greater Bay Airlines have all announced increases in fuel surcharges, with some routes seeing rises of more than 50%, and in certain cases, doubling. Cathay Pacific Group stated that while fuel costs on some routes are hedged at roughly 30%, surcharges are still required to pass costs through to ticket prices and maintain operational efficiency. Industry experts note that fuel expenses typically account for 30–40% of an airline’s total operating costs. For every 1% increase in fuel prices, monthly industry costs can rise by hundreds of millions to over a billion CNY. High fuel prices also impact air cargo operations, leading some carriers to reduce flights on low-yield cargo routes, driving up air freight rates and compressing per-flight profitability.
International oil prices have continued to rise, further intensifying cost pressures on carriers. As of March 17, Brent crude prices remained near USD 100 per barrel, up significantly since the beginning of the year. Jet fuel prices are approaching USD 175 per barrel, compared with roughly USD 88 per barrel in typical years, rising faster than crude itself. Analysts suggest that amid persistently high oil prices and geopolitical uncertainties, raising fuel surcharges has become a crucial measure for airlines to sustain international flight operations and protect revenue. The next domestic adjustment window for fuel surcharges is expected on April 5, with further increases possible.
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