Chinese Carriers Hike Domestic Fuel Surcharges as Middle East Conflict Pushes Brent Crude to US$100

Air China and others to hike domestic fuel surcharges as Middle East war drives oil to $100. Learn how the Strait of Hormuz closure affects flight prices.

By: AXL Media

Published: Apr 2, 2026, 6:08 AM EDT

Source: The information in this article was sourced from Channel News Asia

A Sudden Spike in Travel Costs for Millions of Domestic Commuters

In a direct response to the volatile global energy market, several of China’s largest airlines have announced a mandatory increase in fuel surcharges for domestic travel. Starting Sunday, passengers flying with Air China, China Southern, and Xiamen Airlines will face an additional 60 yuan (US$8.70) for flights under 800km, while longer routes will see a surcharge of 120 yuan. The price adjustment, which also includes budget carriers like Spring Airlines and Juneyao Airlines, marks a significant shift for the industry as it grapples with the fallout from geopolitical tensions thousands of miles away. While international flights will follow a dynamic calculation system, the immediate impact on the domestic sector is expected to be felt by millions of travelers.

Middle East Conflict and the Siege of the Strait of Hormuz

The primary catalyst for this price hike is the escalating war in the Middle East, which has seen Brent crude oil—the global benchmark—surge to approximately US$100 per barrel. The conflict reached a critical juncture following military actions involving the United States and Israel against Iran in late February, leading to retaliatory strikes on oil installations in several Gulf states. Most critically, the effective closure of the Strait of Hormuz has severely constrained the flow of crude, creating a supply shock that has sent jet fuel prices skyrocketing. Although the airlines' official statements did not explicitly name the conflict, the timing aligns perfectly with the disruption of these vital energy supply routes.

Global Aviation Industry Scrambles to Protect Profit Margins

The surcharge hikes in China are part of a broader global trend as carriers attempt to insulate themselves from surging operational costs. Last month, Hong Kong’s Cathay Pacific increased its fuel surcharge by 34 percent, and major international players such as Qantas, Air India, and Air France-KLM have similarly adjusted their fare structures. Industry analysts have warned that while many airlines hedge a portion of their fuel expenses to mitigate price swings, the sheer scale and speed of the current oil rally are likely to compress margins across the sector. Additionally, security concerns have led numerous airlines to suspend services to Middle Eastern destinations entirely, further complicatin...