Mainland airlines increase surcharges for HK, Macau flights

Mainland airlines have increased fuel surcharges on their Hong Kong and Macau flights, a move that has lagged similar increases for domestic and international flights.

China Southern Airlines said it had applied a 21 yuan (HK$24) per passenger surcharge increase on Hong Kong and Macau routes, as well as a 50 yuan increase on Taiwan routes, effective August 6.

China Eastern Airlines also adopted the fuel surcharge increase, mainland media reported.

Although international oil prices have come down 15 per cent in the past month, Beijing has not lowered domestic jet fuel prices accordingly.

'We applied for an increase in fuel surcharge on Hong Kong, Macau and Taiwan routes to [make up for] the shortfall since we have not adjusted them the last couple of times,' said Wang Jianjun, the managing director of China Southern Air Holding's finance department.

Mainland carriers have already increased fuel surcharges on international and domestic routes at least twice this year. However, Hong Kong, Macau and Taiwan, which are neither international nor domestic routes, were not subject to the increases.

Beijing raised ex-factory fuel prices 25 per cent to 7,450 yuan a tonne on June 19, followed by a 700 yuan per tonne increase in the retail price set by China Aviation Oil. Both moves partly reflected the substantial increase in international prices.