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Elizabeth Cheung

Veronica Qi

Hong Kong flag carrier Cathay Pacific Airways will raise fuel surcharges by up to 41 per cent on most passenger flights from August, citing escalating tensions in the Middle East.
The airline said on Friday that the higher passenger and cargo fuel surcharges would take effect on August 1, following a brief period of declines after prices peaked in April.
“This is the first increase to passenger and cargo fuel surcharges since April, and levels remain below their peak in that month,” Cathay Pacific said.
Citing data from the International Air Transport Association (IATA), Cathay noted that the global average jet fuel price rose to US$149.40 per barrel for the week ending July 17, up from US$127.06 the previous week and US$119.13 in the week ending July 3.




According to the airline, fuel surcharges on flights between Hong Kong and the South Asian subcontinent will experience the steepest rise, jumping by 41.3 per cent from HK$448 (US$57) to HK$633.
Surcharges on routes between Hong Kong and mainland China will increase by 20 per cent.
For flights departing from the city to the mainland, the cost will rise from HK$165 to HK$198, while the surcharge for routes going in the opposite direction will increase from 135 yuan (US$19.90) to 162 yuan.

For long-haul flights between the city and the South West Pacific, North America, Europe, the Middle East or Africa, the surcharge will rise by about 41.1 per cent, going from HK$965 to HK$1,362.
Charges for other routes will also rise by 40.7 per cent to HK$339.
Meanwhile, cargo flights are for an even bigger increase. The surcharge for short-haul flights will jump from HK$1.80 per kilogram to HK$2.80 – an increase of 55.6 per cent, while the fee for medium- and long-haul flights will rise by about 50 and 50.7 per cent, respectively.
Cathay said there had been multiple reductions in fuel surcharges since May as jet fuel prices eased, demonstrating the mechanism’s responsiveness to both downward and upwards price movements.
“We continue to review and revise fuel surcharges every two weeks,” the airline said.
Tensions between the United States and Iran have escalated this month after a June ceasefire collapsed.
The US has carried out a series of air strikes on Iran, while the Strait of Hormuz has been nearly closed, pushing up global oil prices.
Yuen Chun-ning, CEO of travel agency WWPKG, said the sharp rise in fuel surcharges would dampen demand for overseas trips, particularly for long-haul tours.
“Given the current economic environment, more travellers may opt for high-speed rail tours in the Greater Bay Area, where they do not have to pay aviation taxes and can get much better value for money,” he said, referring to the area covered by nine cities in Guangdong province, Hong Kong and Macau.
Danny Lau Tat-pong, honorary life chairman of the Hong Kong Small and Medium Enterprises Association, said businesses that relied on air cargo would also be affected by the rise in fuel surcharges.
They could be companies producing high-end clothing, watches and decorations.
“Businesses will try to take sea routes if it is possible. But some cannot use this option, in situations such as rush delivery deadlines,” Lau said.
He said for items that required air cargo and were not too valuable, companies might need to negotiate with clients to help bear the increased costs.


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Cathay Pacific

Cathay Pacific Airways will raise fuel surcharges by up to 41 per cent on most passenger flights from August. Photo: May Tse

Tensions between the United States and Iran have escalated after a June ceasefire collapsed. Photo: AFP 

Cathay says surcharges on routes between Hong Kong and mainland China will be increased by 20 per cent. Photo: May Tse

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Hong Kong

Transport

Airline says higher passenger and cargo fuel surcharges will take effect on August 1, following brief period of declines


Airline says higher passenger and cargo fuel surcharges will take effect on August 1, following brief period of declines.


Cathay to raise passenger fuel surcharges by up to 41% amid Middle East tensions

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Airline says higher passenger and cargo fuel surcharges will take effect on August 1, following brief period of declines

Airline says higher passenger and cargo fuel surcharges will take effect on August 1, following brief period of declines