Chinese airlines consider increasing fuel surcharges to balance rising oil prices and airline margins, but must avoid dampening consumer demand.

Chinese airlines are mulling the introduction of higher fuel surcharges, as authorities strive to balance the impact of surging oil prices with the need to preserve airline margins and at the same time avoid dampening consumer demand. Although a formal announcement from the national regulator is pending, at least two domestic airlines released notices on Wednesday about plans for sixfold surcharge increases, after another airline rescinded a similar notice on Tuesday. According to notices put...