(Yicai) May 6 -- Chinese airlines have not raised fuel surcharges on domestic routes in May after official price controls kept their jet fuel procurement costs from climbing further, though some international flights have been suspended amid pressure from high oil prices.

The fifth day of each month is usually the window for Chinese carriers to adjust domestic fuel surcharges. But airlines had not issued any adjustment notices as of today, even after surcharges were sharply raised in April, though they remain below historic highs.

Fuel surcharges on China’s domestic routes are generally based on airlines’ comprehensive jet fuel procurement costs. When the price exceeds CNY5,000 (USD733) per ton, airlines absorb 20 percent of the excess while passengers pay the remaining 80 percent.

International fuel surcharges are still rising in May, while more airlines are cutting flight schedules as higher fares and fees may not be accepted by all passengers.

The surge in global oil prices since March has directly pushed up jet fuel procurement costs. On March 30, China Petroleum & Chemical Corporation, also known as Sinopec, announced it would raise the ex-factory price of jet fuel for April by CNY4,180, or nearly 100 percent, to CNY9,802 per ton from CNY5,622 in March.

Based on international oil prices in April, domestic jet fuel prices in May were expected to keep rising and exceed CNY10,000 per ton. But according to feedback from several airlines, Sinopec did not adjust its ex-factory jet fuel price this month, indicating that Chinese authorities have also regulated domestic jet fuel procurement prices.

Still, fuel surcharges on many international routes have been gradually increased this month. Spring Airlines issued a notice raising fuel fees for flights departing from South Korea to nearly double April’s level. Airlines in Japan and South Korea have also lifted fuel surcharges, with Korean Air’s May surcharge rising as much as about fivefold from March.

Flight Cuts Spread as Higher Costs Hit Demand

More airlines have begun cutting flights as higher ticket prices and fees may deter some consumers. According to May flight schedules released by Cirium, Turkish Airlines is the only carrier among the world’s top 20 airlines that has not yet cut flights. The other 19 have announced reductions to their May schedules, lowering global capacity by about 3 percent from the original plan.

In China, large-scale flight cuts have not yet started, but many international flights to Southeast Asia and Oceania were canceled before the May Day holiday. Spring Airlines is cutting about 10 flights a day, the company’s management said.

In response to the potential continued pressure from high oil prices, China Southern Airlines’ management said the carrier will make appropriate adjustments to some low-frequency and low-efficiency routes, increase flights on some high-yield core hub routes when opportunities arise, and optimize aircraft allocation.

Editor: Emmi Laine