Cathay Pacific Airways and its low-cost subsidiary HK Express will double fuel surcharges on most routes from 18 March, the Hong Kong-based airlines said, citing a surge in jet fuel prices linked to the ongoing conflict in the Middle East.
[See more: Cathay Pacific cancels Dubai and Riyadh routes until 31 March]
The increase could push up ticket costs for travellers flying from Hong Kong as airlines respond to volatile fuel prices. Cathay Pacific said the price of jet fuel has “approximately doubled since March,” prompting the carrier to adjust its surcharge under its established pricing mechanism.
Fuel surcharges more than double
Under the revised structure, fuel surcharges across Cathay Pacific’s network will increase significantly.
For long-haul flights, including routes between Hong Kong and destinations in North America, Europe, the Middle East, Africa and the Southwest Pacific, the surcharge will rise to US$149.20 (HK$1,164), up from US$72.90 (HK$569).
Flights between Hong Kong and the South Asian subcontinent will see surcharges increase to US$69.40 (HK$541), compared with US$33.80 (HK$264) previously.
For other routes, which typically include shorter regional flights, the surcharge will increase from US$18.20 (HK$142) to US$37.20 (HK$290) per trip.
[See more: Chinese airlines scramble to assist passengers affected by Middle East conflict]
The surcharge applies to all Cathay Pacific tickets regardless of fare class, airline inventory or booking type, the airline said.
Budget carrier HK Express, which Cathay Pacific owns, announced a similar increase. From 18 March, fuel surcharges on flights between Hong Kong and destinations outside mainland China will rise to HK$290, up from HK$140.
Flights between Hong Kong and mainland Chinese cities will not see any change, with the surcharge remaining HK$165.
Middle East conflict driving fuel price surge
Airlines worldwide are grappling with rising operating costs after the conflict involving Iran drove up oil and jet fuel prices.
Concerns over shipping through the Strait of Hormuz – one of the world’s most important oil transit routes – have pushed energy prices higher, increasing costs for aviation fuel.
According to the Platts benchmark, the global average price of jet fuel recently climbed to US$173.91 (about HK$1,356) per barrel.
[See more: China resilient to Hormuz shutdown risks]
Several airlines have already taken action to offset rising costs. Air India has introduced fuel surcharges on domestic and international routes, while Qantas has raised international fares by about 5 per cent. Thai Airways has also indicated ticket prices could rise between 10 and 15 per cent.
Closer to Hong Kong, Hong Kong Airlines has increased fuel surcharges on some routes by up to 35 per cent, with larger hikes affecting flights to destinations such as the Maldives, Nepal and Bangladesh.
Impact on travellers and regional aviation
Despite the higher charges, some travellers at Hong Kong International Airport said the increases were unlikely to change their travel plans.
“If we have to travel, we can’t avoid flying with Cathay Pacific,” passenger Irene Cheung told the South China Morning Post, adding that she found the airline more comfortable than alternatives.
Others said rising prices might affect future travel choices, particularly for spontaneous trips.
The conflict in the Middle East has also disrupted aviation across the region. According to aviation analytics firm Cirium, more than 43,000 flights in and out of the Middle East were cancelled between 28 February and 10 March.
[See more: Hong Kong and Macao drivers are refuelling in mainland China, as petrol prices soar]
Hong Kong authorities have also been assisting residents affected by the situation. As of Thursday evening, about 520 Hong Kong residents who sought assistance from the Immigration Department had safely left the Middle East, with some returning to the city on government-arranged flights.
Cathay Pacific said its fuel surcharge is reviewed monthly and adjusted according to movements in jet fuel prices, meaning further changes could occur if energy costs remain volatile.
