
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
The Response to Self-improvement: Embracing a Development Outlook - 2
Strengthening through Wellness: Individual Preparation Achievement - 3
The Drone Video of the Year is stunning – you've not seen Namibia like this - 4
Relish the World: Notable Caf\u00e9s You Really want to Attempt - 5
3 back-to-back storms forecast to bring snow and surges of cold air across the Midwest to the Northeast
Vote In favor of Your #1 Electric Vehicles
Vote In favor of Your Favored Video Conferencing Administration
The most effective method to Decisively Plan Your Nursing Profession for the Best Compensation Results
Jenny & Dave Marrs Mourn Loss of Former ‘Fixer to Fabulous: Italiano’ Guest
Manual for Picking Coastline Travel
Iran-backed militias reassert power in Iraq, proving the Islamic axis is still standing
The Force of Care: Living with Goal
Which European palace do you fantasy about visiting? Vote!
Supercharge Your Remote Work Arrangement with These Game-Changing Instruments













