China Southern 747-400. Photo: Courtesy, Boeing. The Chinese government on Saturday responded to escalating oil prices by raising domestic jet fuel prices 5.8% to CNY6,340 ($963.56) per ton, putting added cost pressure on the country's airlines. Fuel costs, on average, comprise about 40% of Chinese carriers' total expenses. Air China and China Eastern Airlines previously used fuel hedging to offset rising fuel prices, but Beijing disallowed it in 2008 after the two carriers ...

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