Chinese Airlines React to Rising Fuel Costs Amid Middle Eastern Conflict

Chinese airlines, including the major player Air China, announced on Wednesday an increase in fuel surcharges on domestic flights effective April 5. This decision comes as escalating conflicts in the Middle East have driven up the prices of jet fuel, impacting the global aviation sector.

Air China, alongside China Southern Airlines and its subsidiary Xiamen Airlines, will impose higher fuel surcharges, raising costs to 60 yuan for flights under 800 kilometers and 120 yuan for longer journeys. According to the companies, this adjustment represents a six-fold increase from previous rates.

Budget airlines such as Spring Airlines and China United Airlines, which is part of China Eastern Airlines, also plan similar adjustments. The geopolitical tensions have disrupted the aviation industry worldwide, prompting airlines to adjust fares and reassess financial forecasts, particularly as China's major state-owned airlines remain wary about 2025's financial outlook following losses in the recent quarter.