
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
Rights group: At least 2,500 deaths during protest crackdown in Iran - 2
Israeli media reports Iran attacking greater Tel Aviv region - 3
Holiday weather forecast: Where travelers can expect a wintry mix, flooding and record warmth across the U.S. - 4
The Leonid meteor shower is peaking early this week. Here’s what to know - 5
Home Mechanization Frameworks for Brilliant Residing
Congress is running out of time to extend ACA subsidies as the GOP moves on to an alternative plan. Here's where things stand.
FDA official discusses potential link between COVID-19 vaccines and pediatric deaths
'Stranger Things' Season 5: When does Volume 2 come out? And Volume 3? Everything to know about the remaining episodes before the finale.
In wrangling dark matter, some scientists find inspiration in the Torah, Krishna and Christ
A Russian fighting for Ukraine conned the Kremlin out of $500,000 by faking his own death
Journey Travel Objections for Your Next Experience
Judge approves Purdue Pharma’s new $7B opioid settlement with the Sacklers
The most effective method to Shake Hands Expertly: A Bit by bit Guide
The moon and sun figure big in the new year's lineup of cosmic wonders











