CHINESE GOVERNMENT INCREASES FUEL SURCHARGES

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By TESTCustomwebLP TESTCustomwebLP April 8, 2011 19:26

CHINESE GOVERNMENT INCREASES FUEL SURCHARGES

The Chinese government has raised domestic jet fuel prices to CNY6,840 ($1,045) per ton, up 7.9% from CNY6,340 per ton in February. Most Chinese carriers have announced increased fuel surcharges on domestic routes.

This news is important because the big Chinese airlines have huge domestic operations with around 70-80% of flights being domestic. The airlines remain unable to hedge fuel costs as this is banned by the Chinese government since 2008. Keep an eye on this story to see if Beijing lifts the fuel hedging ban, if it does then this will be a good indicator for other airlines to go back to the hedging table.

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By TESTCustomwebLP TESTCustomwebLP April 8, 2011 19:26
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