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Cathay Pacific increases fuel surcharge by 34% due to oil price fluctuations
Investing.com – Cathay Pacific Airways Limited raised the fuel surcharge for all ticket types by 34% on Thursday. This is the second time in two weeks that the Hong Kong-based airline has increased its fuel surcharge, after previously switching to a biweekly review.
The airline stated in a release that starting April 1, the surcharge for long-haul flights will increase from HKD 1,164 to HKD 1,560 ($199). The surcharge for short-haul flights will rise from HKD 290 to HKD 389.
Cathay Pacific said that more frequent reviews are a temporary measure and will be reconsidered once stability in the Middle East situation is restored. The airline warned that without adjustments, it would be unable to maintain current flight operations, so it chose to raise prices rather than suspend flights.
The airline also noted that its fuel hedging is insufficient to cover the recent surge in fuel costs. Cathay Pacific added that under the new review mechanism, the fuel surcharge could also be reduced.
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