Soaring jet fuel prices hit holiday plans

Soaring jet fuel prices, triggered by the conflict in the Middle East, have led to significant cancellations of international flights from China to Southeast Asia and Oceania ahead of the May Day holiday, disrupting the travel plans of many Chinese tourists.

According to media reports, the cost of aviation fuel has surged from around $90 per barrel to around $200 per barrel in recent weeks — a financial burden for an industry in which fuel accounts for up to a quarter of operating expenses. Several airlines have been forced to raise fares or revise their financial outlooks as a result.

Many Chinese travelers preparing to make the most of the five-day holiday starting on May 1 have reported sudden changes to their flight schedules, particularly for destinations such as Bangkok and Phuket in Thailand, Vientiane in Laos and Sydney in Australia.

Some travelers complained on social media that flights booked well in advance were abruptly canceled, leaving them with no option but to either accept refunds or pay extra to book seats on the limited number of direct flights still available.

One user wrote on Xiaohongshu, also known as RedNote, that he had booked a round trip for the May Day holiday period from Chongqing to Ho Chi Minh City in Vietnam two months ago, but received a flight cancellation notification on April 9.

Although he was offered a full refund, airfares had surged during the holiday period and his hotel booking was nonrefundable. After negotiating with the airline's customer service team, he was rebooked on a partner airline at the same fare and for the same dates.

The latest round of cancellations involves both Chinese carriers and foreign airlines. On April 7, Air China announced that it is canceling all flights between Chengdu Tianfu International Airport and the Malaysian capital Kuala Lumpur until June 30.

Starting on Friday, AirAsia will suspend its Bangkok Don Mueang-Shanghai Pudong flights until the end of the current season. Meanwhile, Thai AirAsia plans to stop operating its Xi'an-Bangkok services after May 11.

According to the aviation data intelligence platform VariFlight, several airlines announced the cancellation of scheduled flights on various routes between China and Southeast Asia between April 1 and 12.

Flights to Oceania from China have also been affected. In April, routes such as Wuhan-Sydney and Guangzhou-Darwin recorded cancellation rates above 50 percent, and the rate of planned cancellations for May is expected to rise.

Sharp rise

Lin Zhijie, an aviation industry analyst, said that the recent flight cancellations are primarily being driven by the sharp rise in jet fuel prices. "Australia-bound flights consume more fuel, so the surge in operating costs is more pronounced on these routes. In some Southeast Asian countries, fuel shortages have triggered a fourfold to fivefold increase in operating costs, putting immense pressure on airlines," he said.

Citing the example of AirAsia, Lin said that foreign low-cost carriers have been hit harder. These airlines typically have narrower profit margins and weaker passenger support and compensation arrangements than full-service airlines, which makes the impact more visible, he added.

Lin pointed out that the problem is far from unique to China. "This is not something that is only affecting the Chinese market. Airlines in other parts of the world are facing similar challenges, and fuel prices remain the single biggest contributing factor. Everyone is struggling to stay afloat," he said.

Olivier Jankovec, director general of ACI Europe, the European branch of Airports Council International, recently warned that, unless the situation around the Strait of Hormuz improves soon, European Union members could face a prolonged shortage of aviation fuel.

Consumer rights experts have highlighted the legal implications of flight cancellations.

Chen Yinjiang, deputy secretary-general of the Consumer Protection Law Association of China Law Society, told China Media Group that airlines failing to provide contracted services may be liable for breach of contract in terms of refunds and compensation for related losses. He advised consumers to seek prompt negotiations with airlines and, if necessary, pursue complaints, mediation or legal action.