Multiple Domestic Airlines Raise Fuel Surcharges: Oil Price Volatility Becomes Definite Pressure, Ticket Price Increases Imminent

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Recently, several domestic airlines have sharply increased international route fuel surcharges, with increases generally over 50%, and some routes even doubling. Against the backdrop of rapidly rising international oil prices, airline cost pressures are accelerating their transmission to ticket prices.

On March 17, Juneyao Airlines announced that due to international fuel price adjustments, starting from March 20, 2026 (ticket issuance date), fuel surcharges for routes between China and Southeast Asian countries will be adjusted. The fuel surcharge for China-Vietnam routes will be adjusted to 400 yuan per segment; China-Indonesia routes to 600 yuan; routes between China and Thailand, Singapore, Malaysia, the Philippines, Laos, Myanmar, Cambodia, and others to 550 yuan.

On the same day, Xiamen Airlines announced that from March 16, it will increase fuel surcharges for Indonesia-China routes from the previous 640,000 Indonesian rupiah to 736,000 rupiah, which is approximately 290 RMB to 330 RMB at current exchange rates, an increase of about 15%.

Earlier, Spring Airlines had already raised fuel surcharges for some international routes on March 11. The largest increase was on routes from Shanghai to Kuala Lumpur and Penang, doubling from 180 yuan to 360 yuan; routes to Japan also saw significant increases, with Shanghai to Osaka, Fukuoka, and Nagoya rising from 200 yuan to 312 yuan, an increase of over 50%.

According to market sources, China Southern Airlines has also recently notified its agents of plans to adjust international route fuel surcharges.

For domestic routes, the next adjustment window is April 5. Currently, the standard from January 5 remains in effect: routes under 800 km charge 10 yuan; over 800 km charge 20 yuan. Industry experts generally expect that as oil prices continue to rise, more airlines may follow suit with increases, further raising travel costs for passengers.

Meanwhile, Cathay Pacific, Hong Kong Express, Hong Kong Airlines, and Greater Bay Airlines have also increased fuel surcharges, with some routes seeing increases over 50%, even doubling, indicating that cost pressures are now fully transmitted within the region.

Li Xiaojin, Director of the Aviation Economics and Industry Development Research Institute at Civil Aviation University of China, told JiJie News that fuel costs typically account for 30%-40% of an airline’s total costs and are the largest rigid expenditure. A 1% increase in oil prices could raise the industry’s monthly costs by hundreds of millions to over a billion yuan.

Under cost pressure, airlines are hedging risks through increasing fuel surcharges and futures hedging. Cathay Group stated at its earnings meeting that about 30% of fuel was hedged by 2026.

However, this hedging space is not unlimited. Aviation expert and Professor Guo Jiajia of South China Normal University’s Business School previously told JiJie News that while fuel surcharges can be adjusted mechanically, ticket prices still depend on supply and demand structures. In a competitive environment, airlines find it difficult to fully pass cost increases onto consumers, and some of the pressure must be absorbed internally.

The impact of oil price fluctuations is also extending into air cargo. High oil prices may suppress airlines’ willingness to deploy capacity, especially on lower-yield routes, with some airlines reducing cargo flights, thereby pushing up air freight prices.

Cathay Group also revealed at its earnings meeting that previously, European cargo flights often refueled in Dubai; now, they need to carry additional fuel for direct flights. This change not only increases operational costs but also reduces effective payload due to higher fuel weight, squeezing profit margins per flight.

As of March 17, Brent crude oil prices remained around $100 per barrel, significantly higher than at the start of the year, and during the escalation of geopolitical conflicts, briefly touched $120.

Driven by rising crude oil prices and widening refining margins, international aviation fuel prices (according to IATA and market data) have approached $175 per barrel, well above the normal level of about $88 per barrel in typical years, with increases even outpacing crude oil itself.

Source: JiJie News