
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 Fragrant Small Tree Birds & Pollinators Love With Stunning Flowers In Summer - 2
Watch Rocket Lab launch Japanese technology-demonstrating satellite to orbit tonight - 3
Pick Your Favored kind of salad - 4
Email Promoting Instruments for Compelling Efforts - 5
Glamour Shots once ruled the mall. I went to one of the last ones standing.
Flu cases are spiking earlier than usual. What you need to know.
Israel issues notice that Ben-Gurion Airport flights likely restricted until at least April 16
NASA counts down for first crewed lunar mission in half a century
Vote In favor of Your Favored Menial helper Administration
Canada's Serene Lakeside Mountain Village Is A Breathtaking Oasis For Outdoor Adventure
What we know about the Brown University shooting suspect who was found dead, and how police linked him to the MIT killing
Dave Coulier shares new cancer diagnosis 1 year after revealing previous diagnosis
UN panel says Israel operating 'de facto policy of torture'
Guinea-Bissau's coup called a 'sham' by West African political figures













