BEIJING, July 27 -- Domestic flights are expected to become a bit more expensive after industry regulators yesterday told airlines they could collect surcharges on tickets as fuel prices rise worldwide.

    Carriers will be allowed to reintroduce fuel surcharges on internal routes from next month until the end of the year, according to a document jointly released by the General Administration of Civil Aviation of China (CAAC) and the National Development and Reform Commission.

    Passengers will have to pay an additional 20 yuan (US$2.46) if they fly less than 800 kilometres or 40 yuan (US$4.93) if they fly 800 kilometres or more.

    CAAC says that in the first five months of this year, revenue lost by domestic airlines totalled 340 million yuan (US$41.9 million).

    The increase in operating costs as a result of surging fuel prices amounted to 3.54 billion yuan (US$436 million) over the same period.

    Jet fuel prices have been rising from 3,400 yuan (US$410) per ton early last year to its current 4,620 yuan (US$558) per ton.

    The three major airlines Air China, China Eastern Airlines and China Southern Airlines made a joint appeal to the CAAC in May to allow them to collect a fuel surcharge.

    A 1 per cent increase in jet fuel prices means a 42.45-million-yuan (US$5.23 million) rise in the company's yearly transport costs, Luo Dewei, financial director of Shanghai-based China Eastern Airlines, was quoted by the Xinhua News Agency as saying.

    Air China and Hainan Airlines hailed the policy change as "good news." Airlines are also under pressure as jet fuel is controlled by a monopoly the Civil Aviation Oil Corporation of China.

    (Source: China Daily)