China raises threshold for airlines’ fuel surcharge

The threshold for fuel surcharges for domestic flights will be raised in an effort to cut passengers' travel costs, China's top economic planner announced on Wednesday.

The fuel surcharge threshold is linked to fuel purchase costs. Starting April 1, airlines are entitled to levy the surcharge if the fuel buying costs surpass 5,000 yuan (814.3 U.S. dollars) per tonne, a level higher than the previously-set 4,140 yuan, according to the National Development and Reform Commission.

The adjustment is estimated to save passengers 20 yuan for each flight under 800 kilometers, and 30 to 40 yuan for longer distances.

Gao Yue'e, an analyst with China Communications and Transportation Association, said the move will help stimulate tourism and consumption.