Air China wins approval for share issue

Air China has won approval from the Securities Regulator to make a previously announced offer of up to 400 million additional A shares. The issue, equivalent to about 3.3 percent of the company's share capital, must be conducted within 6 months.

At Wednesday's closing price for Air China's shares of 10.39 yuan, the offer could raise as much as 607 million US dollars.

China raises jet fuel price by 720 yuan

China has raised prices for jet fuel sold to airlines by about 9 percent, another move to narrow the gap with soaring international prices. A rise of 720 yuan per ton in effect since the start of the month follows a surprise increase in ex-refinery prices by as much as 1,500 yuan per ton in June. Analysts say this is likely to put more pressure on profit margins for carriers.

Chinese authorities traditionally adjust jet fuel prices once a quarter in an attempt to keep up to date with changes in the cost of imports. But the last two years have seen it essentially cushion domestic airlines from the effects of surging global oil prices. But some airlines, including Air China and China Southern, say they are thinking about applying to regulators to further increase surcharges for domestic fuel to make up for higher fuel prices.