Fares take off at some airlines hit with lost revenue

Chinese airlines have lost many high-end customers following the central government's action against corruption.

China Eastern lost 1.02 million high-end customers and 1.09 billion yuan ($178 million) in 2013 compared with 2012. Fliers in the two fare categories on China Southern were reduced by 20 percent in the first half of 2013 compared with the same period in the previous year.

The airlines took another hit after a regulation was released in January forbidding government officials below ministry level to fly business class or first class.

"In luxury categories such as first-class and business-class, people are not price sensitive. They can afford the higher price," said Li Xiaojin, head of the Air Transport Economics Institute at China Aviation University in Tianjin.

The higher fares will help the carriers to get more profit from current high-end travelers, who mainly come from private enterprises, he said.

To fill planes, some airlines have offered promotions and discounts for the business-class and first-class fare levels, but that way is unsuitable, because the carriers' profit will remain lower, some business insiders said.

Another method taken by airlines has been to create a "premium economy class" fare.