TravelMole

Several Chinese airlines, including national carrier Air China, announced to raise or to introduce fuel surcharges on domestic flights from April 5 to match sharp rising fuel prices. The move comes as the war in the Middle East and Iran’s effective closure of the Strait of Hormuz have sent crude prices soaring.

According to the Asia Global Institute, Asia is most dependent on crude passing through the Strait (45.7% of total imports), while Europe and Africa are most dependent on jet fuel from the Strait (roughly 40%). With the Strait blockade, The Asia Global Institute calculated that most Asian economies are reducing refined oil output by 30%, while China is reducing its output by 50% to 70%.

In statements, the three giant air carriers Air China, China Eastern, China Southern and its subsidiary Xiamen Airlines declared that they will increase surcharges on flights of up to 800km by 60 yuan (US$8.70), and 120 yuan for longer flights (US$17.40). 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.

Hong Kong carrier Cathay Pacific already announced a sharp increase of its fuel surcharge on March 18. For short-haul flights, the fuel surcharge increased to HK$290 (US$37), up from HK$142 (US$18).

The surcharge for medium-haul flights rose to HK$541 (US$69) from HK$264 (US$34). For long-haul flights, passengers need now to pay HK$1,164 (US$149) instead of HK$569 (US$73).

The relatively modest fuel surcharge increase is unlikely to deter Chinese travelers to fly according to experts. Last year, Chinese carriers recorded some 770 million passengers, up 5.4% from 2024 and a jump of 16.6% from 2019. From that number, 690 million flew domestic routes.