China’s air travel is booming post-Covid, but rising jet fuel prices could hike ticket costs. Airlines face challenges as demand surges and fuel supply dwindles.
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A Lot More Planes in the Sky
China’s people are flying a lot more now after the Covid-19 break. This is good news for airlines all over Asia. However, there is an issue: the more planes fly, the more jet fuel is needed, and its price might increase.
Local Flights Take Off
Many people in China are now traveling within the country. Moreover, with fewer travel restrictions, they also plan trips to other countries. The problem? All these trips need more jet fuel, which could get pricier.
Less Jet Fuel Available
There is less jet fuel than before. Some places that make jet fuel had to stop for a bit, and others decided to make diesel instead. This means that jet fuel’s price has increased by 30% in a short time.
Airlines Making Money, But Costs Are Up
Airlines have been doing well, making money. However, jet fuel prices have increased, so that they might charge travelers more for tickets.
China’s Economy and Global Oil Prices
China has a big influence on global oil prices. Even though its economy has had ups and downs, more people are booking flights, which is a good sign.
More Flights and Bookings
More people in China are flying now than before Covid-19. Many have also booked group tours for a big holiday in October, and interest in flying to other countries is higher than in 2019.
Some Issues for World Travel
Even with more flights, there are challenges for Chinese people traveling to other countries. The Chinese currency is weaker; getting things like visas can be hard.
Jet Fuel Needs and Less Supply
China will likely need as much jet fuel as before Covid-19 by the end of the year. However, there is a problem: the world might only have enough in mid-2024. Prices may go higher in September because there is less fuel around.
What Does This Mean for Flying?
With jet fuel getting expensive, airlines might add extra charges. This could mean pricier tickets for travelers, especially in Asia. If tickets get too costly, fewer people might travel, which could slow down the airline business.