
Hong Kong aviation giant Cathay Pacific announced Thursday it was raising fuel surcharges on all flights by 34 percent as a result of increasing oil costs due to the Middle East war.
"The price of jet fuel comprises both the crude oil component and the refinery component, both of which have increased significantly in recent weeks," the company said in a statement.
It also shared a list outlining surcharge increases on short-haul flights of 34.1 percent, while medium- and long-haul would increase by 34 percent exactly.
The hike in fees will apply to tickets from April 1, the statement added.
Average jet fuel prices increased globally to US$197 per barrel last week, up from US$95.50 a month ago, according to data by the International Air Transport Association (IATA).
"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 said.
It previously doubled fuel surcharges for most of its routes as a result of the war in the Middle East, and this week extended flight suspensions to and from Dubai and Riyadh until May 31.
It also said Wednesday it will operate extra flights to London, Paris and Zurich "to cater for an upsurge in market demand for Europe".
Many global airlines have implemented fuel surcharges in response to the increase in oil costs.
Cathay said it will review and revise its fuel surcharge every two weeks as a temporary measure because fuel prices remain volatile.
Analysts told AFP that while carriers all hedge a portion of their fuel costs, their margins could still be affected.
Cathay said Thursday its hedging covers only around 30 percent of the crude oil component, but does not apply to the refinery component.
The measure is insufficient "given the scale of the recent surge in jet fuel prices", it said.
The airline "is determined to manage this significant cost challenge as best we could, in order to maintain our network and frequencies during these unprecedented times".
twa/mjw
latest_posts
- 1
Google's proposed data center in orbit will face issues with space debris in an already crowded orbit - 2
Well informed: How to Take full advantage of Your Gadgets - 3
Nature's Best: A Manual for Beautiful Train Rides - 4
Benin coup thwarted by loyalist troops, president tells nation - 5
6 Shades Brands For Seniors
Journey through Pages: A Survey of \Plunging into Scholarly Universes\
Passover under fire: Israelis balance fatigue with cautious hope after month of war
The Best Music Collections of the 10 years
China’s new condom tax will prove no effective barrier to country’s declining fertility rate
Benihana is 60 years old. Gen Z is lining up.
Middle East hotels hit pandemic-era lows amid Iran war
Family Holiday spots
Mickey Lee of 'Big Brother' fame dead at 35 after flu complications, family says
NASA's Perseverance Mars rover could break the record for miles driven on another planet













