Skyrocketing Fuel Surcharges Loom Over China's Aviation Sector

Xiamen Airlines, a subsidiary of China Southern Airlines, plans to significantly increase fuel surcharges for domestic flights due to rising jet fuel costs linked to the U.S.-Israeli war on Iran. Other Chinese carriers, like China United Airlines, are following suit amid challenges in the global aviation industry.

Xiamen Airlines, affiliated with China Southern Airlines, announced a substantial increase in fuel surcharges for its domestic flights set to take effect from April 5. This surge is attributed to escalating jet fuel prices stemming from the ongoing U.S.-Israeli conflict with Iran.

Beginning next month, passengers flying less than 800 kilometers will see charges rise from 10 yuan to 60 yuan, while those traveling longer distances will face a hike from 20 yuan to 120 yuan. This adjustment reflects the broader trend across the aviation sector, with China United Airlines under China Eastern Airlines and other carriers, including Spring Airlines, implementing similar changes.

The conflict has thrown a wrench into the global aviation industry, compelling airlines to adjust fares and reevaluate financial projections. China's three main state-owned carriers remain wary about the year ahead, following reported losses in the fourth quarter of 2025.

(With inputs from agencies.)