Updated Friday, May 9, 2008 0:00 am TWN, The China Post news staff and CNA Holiday airfares hiked over fuelAscending ticket costs have followed the trend of crude oil, with both soaring further since the air-service industry's last major price rise in March. Chen Peng-yu, a public relations official for China Airlines (CAL), Taiwan's largest air carrier, said that the summer is usually a busy travel season and that due to the cost of rising fuel prices, the airline is planning to hike airfares starting June 15. EVA Airways Corp.'s airfares announced their fares would rise by 30 percent, while China Airlines' rates were quoted at making the biggest leap at 50 percent. Spokespeople for the airlines explained the decision had been made in light of the "increasingly precarious position of the industry," reported the local Taiwan media. EVA Airways reported NT$2.3 billion in writedowns in the first quarter this year, while China Airlines reported NT$2.9 billion. They emphasized that it was necessary to increase prices during the holiday period in order to continue to make a profit. Prices will continue to soar from June through till about September, they predicted. China Airlines' spokesperson pointed out that airfares for travel in Northeastern Asia during the summer holiday period this year have risen from last year by 10 to 33 percent, with Southeastern-bound routes seeing average increases of 20 to 30 percent. EVA Airways spokesman Nieh Kuo-wei said that the fuel price for air carriers has risen from US$84 a barrel last year to US$145 a barrel. Fuel costs used to account for 20 percent of the airline's operations costs, but the ratio has now risen to 50 percent, Nieh said. "The air carrier has no choice but to adjust its airfare prices," Nieh added. UNI Airways Corp. has hiked its airfare since March and will adjust it further in June. Prices of the airlines' tickets are expected to reach a peak in late June or early July. CAL and UNI have raised their airfares the highest on their long-haul flight routes, such as to Europe or the United States. Nieh said that although the price hike will average 30 percent, it still will not cover the expenses of fuel costs. He noted that the ticket price hike will surely impact the tourism market, but the air carrier "has no other choice." He noted that EVA lost NT$1.8 billion (US$59.02 million) last year, but the air carrier lost up to NT$2.3 billion in the first quarter of this year alone. "If EVA Airways is under serious loss and is forced to cut or suspend certain flight routes, then it will be even more damaging to the passengers," he added. | Business Breaking News Most Read |