Cathay Pacific has increased fuel surcharges on all flights by around 34% due to rising oil prices linked to the ongoing Middle East conflict, the airline said on Thursday. The revised charges will apply to tickets issued from April 1.
The airline said both crude oil and refinery components of jet fuel have risen sharply in recent weeks, pushing up operating costs. It added that surcharges on short-haul flights will increase by 34.1%, while medium- and long-haul routes will see a 34% rise.
Global jet fuel prices have climbed to an average of $197 per barrel last week, compared to $95.50 a month ago, according to data from the International Air Transport Association.
Rising costs, limited hedging add pressure
“If the steep increase of fuel costs cannot be effectively mitigated, we would not be able to sustain the effective operations of our network,” the airline said.
Cathay Pacific said it will review and adjust fuel surcharges every two weeks as fuel prices remain volatile. The airline added that its hedging strategy covers about 30% of the crude oil component but does not include refinery costs.
“The measure is insufficient given the scale of the recent surge in jet fuel prices,” it said.
The airline has already doubled fuel surcharges on most routes earlier due to the conflict and has extended flight suspensions to and from Dubai and Riyadh until May 31.
At the same time, it plans to operate additional flights to London, Paris and Zurich to meet rising demand for travel to Europe.
Airlines globally are increasing fuel surcharges as higher oil prices continue to impact operating margins. l
The airline said both crude oil and refinery components of jet fuel have risen sharply in recent weeks, pushing up operating costs. It added that surcharges on short-haul flights will increase by 34.1%, while medium- and long-haul routes will see a 34% rise.
Global jet fuel prices have climbed to an average of $197 per barrel last week, compared to $95.50 a month ago, according to data from the International Air Transport Association.
Rising costs, limited hedging add pressure
“If the steep increase of fuel costs cannot be effectively mitigated, we would not be able to sustain the effective operations of our network,” the airline said.
Cathay Pacific said it will review and adjust fuel surcharges every two weeks as fuel prices remain volatile. The airline added that its hedging strategy covers about 30% of the crude oil component but does not include refinery costs.
“The measure is insufficient given the scale of the recent surge in jet fuel prices,” it said.
The airline has already doubled fuel surcharges on most routes earlier due to the conflict and has extended flight suspensions to and from Dubai and Riyadh until May 31.
At the same time, it plans to operate additional flights to London, Paris and Zurich to meet rising demand for travel to Europe.
Airlines globally are increasing fuel surcharges as higher oil prices continue to impact operating margins. l
