Although there are worries that sizable price rises may hurt recovery in the travel market and lose some clients, airlines seem confident of the market-pricing mechanism. Luo Zhuping, board secretary of China Eastern, said the price hike is a signal of air ticket shortages.
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"The second and third quarters are the peak season for airlines. The air tickets are more expensive during this period of the year. We cannot simply attribute the price rise to the implementation of the new policy," said Luo.
Peng said high airfares will not remain for long because there will be a cool-down period after the Expo wraps up. "We are currently at a very special time. The ongoing Expo is significantly jacking up the demand for air travel but things will change after Oct 31 when the event ends," said Peng.
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But for ordinary passengers who have to pay their own travel fees, any rise in prices may lead to a great change in their travel plans. Jiang Xiaoxue works in the sales department of the Wuxi branch of Bank of China and receives an annual income of more than 100,000 yuan. As a keen traveler, Jiang plans a trip almost every month. During the past three months she found the price of economy class air travel constantly rising.
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Shares of the top Internet service provider company, whose clients include China Mobile, Sina and Alibaba Group, surged as much as 95 percent during the initial public offering (IPO).
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