
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
Vote in favor of your favored spot to peruse - 2
Paraplegic engineer becomes the first wheelchair user to blast into space - 3
Instructions to Choose the Best Material Organization for a Fruitful Rooftop Substitution - 4
The Artemis II launch is tonight. Here's how to watch it live. - 5
What exactly is the Upside Down in 'Stranger Things'? The wormhole revelation, explained.
My Enterprising Excursion: Building a Startup
Doctor's orders: Eat ice cream, and other tips for a long and healthy life
IDF kills four terrorists equipped with weapons, surveillance gear near Gaza's Yellow Line
At least 7 dead as Israel renews attacks on Beirut and across Lebanon
Ukrainian Army Converts E38 BMW 7-Series Into Multiple Rocket Launch Platform
This Tiny Neon Frog Dwells in the Clouds
Best Veggie lover Dinner: What's Your Plant-Based Pick?
Brazil's ex-president Bolsonaro operated on for hernia
Best Pizza Beating: What's Your #1?












