China's national carrier Air China announced on Monday it will resume the bunker adjustment factor (BAF) for domestic flights, an aviation fuel surcharge for passengers, of 10 yuan ($1.56) per person.
From Tuesday, for flights of no more than 800 kilometers, the BAF has been raised to 10 yuan from zero, according to a statement on the airline's website. For flights above 800 kilometers, the adjustment is the same.
With this move, Air China resumed charging the BAF for domestic flights after three years. Earlier on Monday, Kunming Airlines announced the same policy.
Currently, domestic airlines have a say for the BAF on international flights, while they have to comply with the cap of the National Development and Reform Commission for domestic flights.
With the recent rise in international oil prices, the jet fuel price has surpassed 5,000 yuan per ton, the threshold of the BAF for domestic flights, Cheng Zhifeng, analyst from Kunming-based Pacific Securities, said in a research report on Sunday, thepaper.cn reported.
The report said that "it's good for airlines to resume charging the BAF. But if some don't charge the BAF and fuel prices remain at a high level, we think domestic airlines will raise flight prices by the end of October this year."
