Cathay Pacific to hike fuel surcharges by 34% as jet fuel prices surge
The airline's fuel surcharges will now be HK$389 (US$50) for short-haul flights, HK$725 for medium-haul flights and HK$1,560 for long-haul flights.
A Cathay Pacific aircraft takes off at Hong Kong International Airport on the day of the official launch of its third runway, in Hong Kong, China, on Nov 28, 2024. (File photo: Reuters/Tyrone Siu)
Hong Kong's Cathay Pacific Airways said on Thursday (Mar 26) it will hike fuel surcharges by 34 per cent across routes from Apr 1 and review them every two weeks, citing higher jet fuel prices driven by the war in the Middle East.
The fuel surcharges will be HK$389 (US$50) for short-haul flights, HK$725 for medium-haul flights and HK$1,560 for long-haul flights.
The global average jet fuel price has nearly doubled since the start of the war in the Middle East on Feb 28, surging to US$197 a barrel in the week ending on Mar 20, according to the International Air Transport Association (IATA).
The unprecedented surge in fuel costs, which accounts for up to a quarter of the industry's operating expenses, has upended global aviation and forced carriers to raise fares, cut capacity, and revise financial outlooks.
Fuel made up about 30 per cent of Cathay Pacific's operating costs in 2025, but partial hedging that excludes the refinery component has left it vulnerable to the spike in prices, Hong Kong's flagship airline said.
"If the steep increase of fuel costs cannot be effectively mitigated, we would not be able to sustain the effective operations of our network," Cathay Pacific said.
