(Yicai) April 29 -- Air ticket prices on some Chinese domestic routes have dropped sharply ahead of the five-day May Day holiday, even as airlines raise fuel surcharges in response to rising oil prices.

The average presale price of economy-class domestic flights for the holiday stood at CNY971 (USD134) as of April 27, down from CNY1,000 (USD146) on April 22 and CNY979 on April 13, according to data from flight information provider Flight Master. Prices are still almost 13 percent higher than last year and 23 percent above 2019 levels.

A traveler wrote on social media that they had tracked fares since early April, when round-trip tickets from Beijing to Urumqi cost between CNY4,500 and CNY6,000 (USD658 to USD878), but fell to about CNY2,700 by the end of the month. Similar last-minute price drops were also seen ahead of the 2024 May Day holiday and the 2025 Spring Festival, according to Flight Master data.

Airlines say demand remains resilient despite rising costs, but there are limits to how much higher prices can go. Executives at Spring Airlines said at a recent earnings briefing that passenger load factors and presales have not declined significantly, although higher fares and surcharges have yet to offset rising aviation fuel costs.

China Southern Airlines executives added that when travel costs increase by more than CNY200, the dampening effect on demand becomes “relatively obvious,” limiting the ability to pass on fuel cost increases to consumers.

Fuel surcharges have risen sharply since April 5, with fees now at CNY60 (USD9) for domestic routes of up to 800 kilometers and CNY120 for longer flights, up by CNY50 and CNY100, respectively, from March levels.

Editor: Emmi Laine