
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
Young Muslims in Germany feel left out of Mideast debate, experts say - 2
He walked on the moon in 1972. This is his advice for the Artemis II astronauts. - 3
Hundreds of Intact Dinosaur Eggs Emerge From 72-Million-Year Time Capsule - 4
More charges filed against ex-left-wing RAF member Daniela Klette - 5
FDA approves Wegovy pill for weight loss: What to know
Jury says Johnson & Johnson owes $40 million to 2 cancer patients who used talcum powders
Anthony Joshua's driver charged over Nigeria crash that killed two
Corcept Therapeutics shares surge as lead drug gets FDA nod for ovarian cancer
Consumers advised to dispose of 19 cooking pans due to lead leaching risk, FDA reports
Lahav 433 head Asst.-Ch. Meni Benjamin named as police officer investigated for breach of trust
Newly identified species of Tanzanian tree toad leapfrog the tadpole stage and give birth to toadlets
Uzbekistan launches €9.46 billion green energy push, covering nation’s power needs
'Harmonious' meeting between Merz, Lula despite Belém controversy
Ober Gabelhorn glacier reveals remains of man missing for over three decades













