China has extended the collection period for jet fuel surcharges on domestic flights until the end of March in a move to help carriers survive rising fuel prices.

The surcharge, which was to have run out on December 31, allows domestic airlines to charge each passenger 20 yuan (US$2.50) for flights under 800 kilometers.

For flights longer than 800 kilometers, the surcharge is 40 yuan. Passengers won't have to pay the surcharge on tickets booked before the announcement.

Domestic carriers received approval to collect the jet fuel surcharge beginning in August.

The extra fees will help airlines at least partially recover from huge losses in the first half of this year, analysts said.

Shanghai-based China Eastern Airlines, the nation's third-largest carrier, posted a loss in the first half but said it expects to turn a profit in the second half thanks to the surcharges and the appreciation of yuan.

Airlines, however, continue to lobby the aviation administrator to raise surcharges and prolong their effectiveness, claiming the present charge doesn't go very far in offsetting higher jet fuel costs.

(Shanghai Daily November 25, 2005)