Taiwan's local government has allowed carriers to hike fuel surcharge on international flights by 15.4% from Jul. 15, to help make up losses caused by surging fuel prices.

Fuel surcharge for long haul international flights will be raised by US$13 to US$97.5, while surcharge for short haul flights will increase by US$5 to US$37.5, according to Civil Aeronautics Administration (CAA).

This is the fourth hike in recent months, which is double the hike on Jun. 16 when fuel surcharge was raised by US$2.50 for short haul and US$6.50 for long haul flights.

Affected by soaring prices of aviation fuel, China Airlines and EVA Air, both operating long haul international flights, reported losses of NTD 2.97 billion and NTD 2.29 billion respectively in the first quarter this year.

It is estimated that the two major airlines have suffered even larger losses in the second quarter. China Airlines plans to cut 100 passenger flights and 50 all-cargo flights a month, while EVA Airways will slash up to 5% of its passenger flights from Sep. 1 and Dec.1.