Hong Kong’s flagship airline, Cathay Pacific, and its low-cost affiliate, HK Express, have announced hefty increases to their fuel subsidies for major flights starting from next Wednesday.
The decision comes as global oil prices continue to rise due to the ongoing Iran war, which has resulted in the effective closure of the Strait of Hormuz – a key waterway for the shipping of Middle Eastern oil.
In a statement yesterday, Cathay Pacific indicated it would raise its fuel surcharge by approximately 34 percent across most major routes.
Long-haul flights will see their levy jump from HK$1,164 to HK$1,560, while medium-haul flights between Hong Kong and South Asia will experience an increase from HK$541 to HK$725. Short-haul flights are slated to see their fuel fee rise from HK$290 to HK$389.
On the higher charges, the Hong Kong carrier explained it was due to the “surging” price of jet fuel worldwide, which it said had jumped from an average of US$95.95 per barrel during the second half of February to US$197 per barrel in the second half of March.
“Fuel accounted for approximately 30 percent of Cathay Pacific’s total operating costs in 2025 and is critical to our operations,” the airline said, adding that the fuel charge was “an important mechanism” for the company to recoup some of its fuel costs.
Moving forward, Cathay Pacific noted it would make adjustments to its fuel levy on a fortnightly basis, so as to “better capture” the increases and decreases in the price of jet fuel.
[See more: Hong Kong and Macao drivers are refuelling in mainland China, as petrol prices soar]
This measure, however, is only “temporary,” with the airline stating the decision to carry out more frequent reviews of the fuel levy would be “revisited when the Middle East situation stabilises.”
Cathay Pacific’s subsidiary, HK Express, has also made a similar update to its fuel surcharge. According to multiple media outlets, the budget airline is set to increase its levy for flights from Hong Kong to all other destinations (excluding mainland China) from the current HK$290 to HK$389.
As for flights departing from other destinations, the fuel surcharge would be calculated based on the local currency.
Like its parent company, HK Express will also be carrying out a temporary bi-weekly review of its levy, with the measure set to be reassessed once the Middle Eastern conflict deescalates.
The current announcements by Cathay Pacific and HK Express represent the second time in two weeks that both companies have increased their fuel levies. On 18 March, both airlines doubled their surcharge across most routes due to the rise in oil prices.
Other airlines across the globe have also responded to the rise in jet fuel costs by heightening their fuel levies. Air India, for instance, began charging an extra US$50 for European, North American and Australian flights from 18 March. Similarly, Thai Airways tickets are set to cost an additional 10 to 15 percent.
In some cases, flight companies have responded by cutting their service frequency, as illustrated by Vietnam Airlines, which announced it would be suspending seven domestic routes from 1 April.
