Cathay Pacific to hike fuel surcharges starting August

This comes amidst rising jet fuel prices.

Cathay Pacific will raise passenger and cargo fuel surcharges from 1 August as a rebound in jet fuel prices pushes up travel and shipping costs, the airline said in a statement.

Its fuel surcharge for flights between Hong Kong and the Chinese Mainland will increase to $198 from $165, whilst flights between Hong Kong and the Southwest Pacific, North America, Europe, and the Middle East and Africa will rise to $1,362 from $965.

The surcharge for flights between Hong Kong and the South Asian sub-continent will increase to $633 from $448, whilst charges for other routes will rise to $339 from $241.

Cathay Pacific will also raise the fuel surcharge for flights between Hong Kong and South Korea to $321.44 (US$41) from $291.65 (US$37.20) from 1 August.

The fuel surcharge for flights between Hong Kong and the Philippines stands at $106.23 (PHP835), effective from 16 July, whilst the surcharge for flights between Japan and Hong Kong or Taipei is $694.44 (JPY14,500), effective from 1 May.

Cathay Pacific said the increase follows a rise in global average jet fuel prices to $1,171.30 (US$149.40) a barrel for the week ending 17 July.

This compares with $996.15 (US$127.06) for the week ending 10 July and $933.98 (US$119.13) for the week ending 3 July, based on the latest price data published by the International Air Transport Association.

“This is the first increase to passenger and cargo fuel surcharges since April, and the levels are still lower than they were during their peak in that month,” the airline said, adding that the increase follows several surcharge cuts from May as jet fuel prices declined.

“We continue to review and revise the fuel surcharges every two weeks,” it said.

Cathay Cargo will also increase its fuel surcharge for cargo departing Hong Kong from 1 August.

The rate for short-haul destinations will rise to $2.80 per kilogramme, whilst the medium-haul rate will increase to $5.10 per kilogramme and the long-haul rate to $10.10 per kilogramme.

The airline attributed the rise in jet fuel prices to the escalation of tensions in the Middle East.

(US$1 = HK$7.84)
(HK$1 = JPY20.88)
(HK$1 = PHP7.86)