
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
Antivirus Programming for Exhaustive Security - 2
10 Moving Design Frill for Summer 2023 - 3
Merz says army could be involved in mine-clearing from Hormuz - 4
Interstellar comet 3I/ATLAS isn't an alien spacecraft, astronomers confirm. 'In the end, there were no surprises.' - 5
Unwinding History's Secrets: Looking for the Response to Antiquated Human advancements
Watch interstellar comet 3I/ATLAS make its closest approach to Earth in free livestream on Dec. 18
5 Great Youngster Care Administrations To Watch in 2024
Two UN peacekeepers killed in explosion in Lebanon
‘Risk children’s lives for some extra manpower’: IRGC recruits 12 year olds to fill personnel gaps
Figuring out the Business venture Code: The Response to Building an Effective Startup
First Phosphate advances battery-grade phosphate project as analysts highlight strategic Federal support
Brazil expands pesticide packaging reverse logistics
10 Distinct Kinds of Chinese Neighborhood Specialty Hot Pot
How color-changing, bacteria-infused spacesuits could help keep future astronauts safe from space radiation













