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Airlines to raise fares to counter fuel costs
By Cao Zhe (China Daily)
Updated: 2005-07-27 06:03

Domestic flights are expected to become a bit more expensive after industry regulators yesterday told airlines they could collect surcharges on tickets as fuel prices rise worldwide.

Passengers descend from a jetliner belonging to China's first budget airline - Spring Airline in Yantai, East China's Shandong Province, July 18, 2005. [newsphoto]

Carriers will be allowed to reintroduce fuel surcharges on internal routes from next month until the end of the year, according to a document jointly released by the General Administration of Civil Aviation of China (CAAC) and the National Development and Reform Commission.

Passengers will have to pay an additional 20 yuan (US$2.46) if they fly less than 800 kilometres or 40 yuan (US$4.93) if they fly 800 kilometres or more.

CAAC says that in the first five months of this year, revenue lost by domestic airlines totalled 340 million yuan (US$41.9 million).

The increase in operating costs as a result of surging fuel prices amounted to 3.54 billion yuan (US$436 million) over the same period.

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