TAIPEI (Taiwan News) — China Airlines Chair Kao Shing-hwang (高星潢) said the company is considering raising ticket prices to offset higher fuel costs driven by the war in Iran, as part of efforts to maintain stable flight operations.

At a press conference on Tuesday, Kao said fuel costs account for about 40% of the company’s operating expenses. He noted that oil price fluctuations have intensified, increasing operational uncertainty, per CNA. Kao said oil prices are not expected to quickly return to pre-war levels.

As of April, the airline’s average passenger occupancy rate remained above 85%. Demand on US routes from business travelers was strong, with occupancy averaging about 85% from January to April, while direct flights to Europe reached 90%.

With the yen continuing to weaken, demand on Japan routes is expected to increase, Kao said. He is also optimistic about direct European routes, noting that part of the growth is driven by disruptions to operations at some Middle Eastern airports due to the war.

As of the first quarter, China Airlines operated flights to 186 destinations across 29 countries. The airline plans to increase flight frequencies across key routes in Asia, the Americas, and Europe. It will also continue to acquire new aircraft to meet passenger demand.

Despite rising fuel costs affecting earnings, Kao said the airline aims to maintain uninterrupted flight operations. The company will also adjust flight frequency to meet passenger demand.

In addition to potential airfare increases, China Airlines, EVA Air, and Starlux Airlines will raise fuel surcharges on cargo exports from Taiwan to Europe and the US starting in May, from NT$41 (US$1.28) to NT$81 per kg. For exports to Asia, the surcharge will increase from NT$14 to NT$28 per kg.

Air freight from Taiwan to the US costs about NT$250 per kg, mainly for AI products, semiconductors, and networking equipment. With cargo fuel surcharges set to increase, electronic goods to the US may be shipped earlier than planned later this month.