Air travel in China is about to get more expensive

Big Chinese airlines have been cleared to let their prices take off.The country's aviation regulator is liftin...

Posted: Jan 8, 2018 12:50 PM
Updated: Jan 8, 2018 12:50 PM

Big Chinese airlines have been cleared to let their prices take off.

The country's aviation regulator is lifting a cap on how much government-owned carriers are allowed to charge passengers on domestic Chinese routes.

If a route is served by at least five carriers, the state-run airlines can now hike prices by as much as 10% a year.

The new rule takes effect immediately and applies to 300 routes, China's civil aviation regulator said in a statement.

"The Chinese airlines have greater pricing power than ever before," said Corrine Png, an analyst at research firm Crucial Perspective. She predicts carriers will start by hiking fares about 5%.

Related: Flying in 2017 was safer than it's ever been

The main state-run airlines didn't immediately respond to requests for comment Monday. But their share prices jumped, suggesting investors expect the looser regulations to bring in more money.

Chinese authorities previously kept a tight leash on plane fares. But there have been signs of them taking a more relaxed view in recent years.

The changes come as air travel is booming in China, the world's most populous country and second largest economy.

The International Air Transport Association said last year that China will overtake the U.S. as the world's largest air travel market by 2022.

Related: The numbers behind China's massive aviation market

Data from Crucial Perspective shows that passenger load factors -- a measure of how full planes are -- are running at record highs in China.

Passenger numbers on domestic routes are growing about 10% ever year.

Png said that China Southern Airlines should see the biggest boost to its bottom line following the change, as most of its revenues comes from domestic travelers.

Its stock rose 4.3% in Hong Kong on Monday following the news. Shares in another big state carrier, Air China, jumped 6.2%.

-- Nanlin Fang contributed to this report.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 46387

Reported Deaths: 2662
CountyConfirmedDeaths
Marion11434680
Lake4985241
Elkhart313343
Allen2695117
St. Joseph185766
Cass16369
Hamilton1502100
Hendricks1371100
Johnson1244118
Porter69037
Tippecanoe6598
Madison64363
Clark62744
Bartholomew58044
Howard55057
LaPorte54125
Kosciusko5003
LaGrange4646
Jackson4583
Vanderburgh4576
Noble45128
Delaware42949
Boone42743
Hancock42535
Marshall4183
Shelby41825
Floyd37044
Morgan32331
Montgomery29020
Grant28726
Clinton2812
Monroe26328
Dubois2616
White25910
Decatur24732
Henry23615
Lawrence23624
Vigo2278
Harrison20822
Warrick20729
Dearborn20622
Greene18432
Miami1802
Jennings16911
Putnam1658
DeKalb1594
Scott1557
Daviess13916
Orange13323
Wayne1296
Franklin1248
Steuben1242
Perry1239
Ripley1148
Jasper1132
Carroll1092
Wabash1092
Fayette967
Newton9610
Whitley814
Randolph774
Starke773
Huntington702
Wells681
Jay670
Fulton661
Jefferson661
Washington651
Knox630
Pulaski621
Clay594
Rush563
Benton480
Adams471
Gibson462
Owen451
Sullivan441
Brown381
Blackford372
Posey360
Spencer331
Tipton301
Crawford290
Fountain292
Switzerland260
Martin220
Parke220
Ohio140
Warren141
Union130
Vermillion130
Pike80
Unassigned0193

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 52865

Reported Deaths: 2876
CountyConfirmedDeaths
Franklin9338407
Cuyahoga7013366
Hamilton5224198
Marion273138
Lucas2628302
Pickaway217641
Summit1969206
Montgomery178426
Mahoning1752228
Butler144844
Columbiana120960
Stark1052112
Lorain96267
Trumbull86362
Warren75721
Clark7399
Belmont53421
Delaware51815
Tuscarawas51510
Fairfield50316
Medina49132
Lake44316
Miami44231
Ashtabula42144
Portage41858
Licking41611
Geauga39042
Wood38451
Clermont3566
Wayne35452
Richland3185
Allen29740
Mercer2728
Darke23625
Erie22922
Greene2229
Holmes2043
Madison1888
Huron1772
Crawford1357
Ottawa13023
Washington12720
Sandusky12213
Morrow1151
Putnam11516
Hardin11312
Ross1092
Auglaize993
Monroe8617
Coshocton811
Jefferson802
Union801
Hancock761
Hocking767
Muskingum731
Preble661
Lawrence650
Williams652
Clinton620
Guernsey603
Shelby594
Logan581
Wyandot584
Fulton570
Ashland551
Brown531
Carroll513
Defiance483
Fayette460
Highland431
Knox391
Champaign381
Athens371
Scioto360
Seneca332
Perry301
Henry290
Van Wert270
Paulding230
Vinton222
Adams211
Pike200
Jackson170
Gallia141
Harrison121
Meigs110
Noble110
Morgan90
Unassigned00
Fort Wayne
Scattered Clouds
90° wxIcon
Hi: 92° Lo: 69°
Feels Like: 90°
Angola
Clear
86° wxIcon
Hi: 90° Lo: 68°
Feels Like: 88°
Huntington
Broken Clouds
91° wxIcon
Hi: 90° Lo: 68°
Feels Like: 91°
Decatur
Scattered Clouds
90° wxIcon
Hi: 93° Lo: 70°
Feels Like: 90°
Van Wert
Scattered Clouds
90° wxIcon
Hi: 95° Lo: 70°
Feels Like: 90°
Heatwave Continues
WFFT Radar
WFFT Temperatures
WFFT National

Community Events