Hong Kong - Cathay Pacific Airways Ltd. announced on Thursday that it will raise fuel surcharges across all ticket types by 34 percent, marking the second increase in a two-week span. Under the new fee schedule the carrier said the fuel surcharge for long-haul itineraries will increase to HK$1,560 per ticket, up from HK$1,164. Short-haul journeys will see the levy rise to HK$389, from HK$290. The changes take effect on April 1.
The airline also said it is moving to a biweekly review cycle for fuel levies. Management described the switch to more frequent adjustments as a temporary measure that will be revisited if and when the situation in the Middle East stabilises. The company framed the step as a response to recent volatility in fuel prices.
In its statement, Cathay Pacific noted that its existing fuel hedges have not been sufficient to offset the recent escalation in fuel costs. The carrier said it had to choose between curtailing operations and raising prices, and opted to increase the surcharges to avoid grounding flights.
The airline added that under the newly adopted review framework, fuel surcharges could be reduced as well as raised, depending on future market developments. Cathay Pacific emphasised that the biweekly cadence for assessing levies is intended as a temporary measure tied to the current regional situation.
Operational context and company statement
Cathay Pacific characterised the recent moves as necessary adjustments to preserve the continuity of its flight schedule. The carrier pointed to a combination of sharply higher fuel prices and fuel hedge positions that have not fully covered recent cost increases as the rationale for the surcharge rise and the change in review frequency.
Implications
The changes affect passengers purchasing both long- and short-haul tickets, and represent an operational response by the airline to elevated fuel costs. Cathay Pacific framed the approach as a temporary policy that could be reversed if market conditions permit.