
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
Israel's fractured opposition hands Netanyahu a full term - 2
NATO needs Ukraine's 'adaptation DNA' and an 'HOV lane' for new war tech, top commander says - 3
Tens of thousands protest as far-right AfD forms new youth group - 4
Airbnb Unveils Airport Pickup Service Across 125 Cities in Global Expansion - 5
Manual for Notorious Fragrances: Immortal Aromas
Doctors looking into hormone therapy as a way to ward off dementia in women
The race is on to turn your body into a GLP-1 factory
Ancient Egyptian pharaoh's boat is being reassembled in public at the Grand Egyptian Museum
The Significance of a Land Lawyer for Your Business
Step by step instructions to Pick an Incineration Urn: Variables to Consider
Flu activity in US could continue to rise for weeks, top CDC epidemiologist says
2024 Style: The It-Things You Want in Your Closet
Astronomers detect rare 'free floating' exoplanet 10,000 light-years from Earth
Changes to CDC website spark debate over autism and vaccine misinformation












