Cathay Pacific roughly doubles fuel surcharge on most routes

HONG KONG – Hong Kong aviation giant Cathay Pacific announced new fuel surcharges for most routes on March 12 that are roughly double the existing ones.

The company revealed a detailed list of affected routes in a statement titled “Fuel surcharge updates”, a day after warning that fuel prices had soared in March with the outbreak of war in the Middle East.

Cathay Group’s chief executive Ronald Lam told a March 11 media session the cost of fuel so far for March is double the average of the previous two months.

The hike in fees will apply to tickets from March 18, the statement said.

The fuel surcharge for short-haul flights will increase from the current HK$142 (S$23) to HK$290.

For medium-haul flights, the fuel surcharge will be hiked from HK$264 to HK$541, while surcharge for long-haul flights will incease to HK$1,164, up from the current HK$569.

For example, for flights between Hong Kong and Europe that were purchased in Hong Kong, the surcharge will rise from HK$569 to HK$1,164.

On March 12, Cathay also announced additional flights to London to meet increased market demand for travel to Europe.

The day before, the carrier said it had observed a “general increase” in flight demand from other regions, particularly for long-haul flights, with travellers looking for alternatives to routes that rely heavily on Middle Eastern hubs.

This week, Cathay axed all flights to Dubai and Riyadh in March, extending earlier suspensions.

Analysts say that while all carriers hedge a portion of their fuel costs, their margins could still be affected.

Hong Kong Airlines also raised the fuel surcharge for most of its flights from March 12. AFP