After their suspension for two years, Cathay Pacific Airways will reintroduce fuel surcharges in a bid to ease the airline’s cost pressure, the Hong Kong Economic Journal reports.
“A fuel surcharge will be included on all Cathay Pacific and Cathay Dragon tickets issued or re-issued” on or after Nov. 2, the company said in a statement posted on its website on Thursday.
The surcharge, which covers all types of fares, will be adjusted in accordance with fuel prices on a monthly basis, according to the statement.
Cathay said passengers will have to pay an extra HK$625 for the long-haul flights and HK$146 for short-haul trips.
Long-haul flights include those between Hong Kong and South West Pacific, North America, Europe, Africa, Middle East, and South Asia.
Flights between Japan and the United States, those between the US, Europe, South West Pacific and South America, together with flights between Kazakhstan and Asia, are also counted as long-haul flights.
The rest are considered short-haul flights.
Since February 2016, the Civil Aviation Department had banned airlines from levying fuel surcharges for passengers leaving Hong Kong.
Last Friday, the department revoked the rule, saying airlines could decide on their own whether they would like to resume imposing the fuel surcharge for flights departing the city from November, RTHK reported.
Both Hong Kong Express Airways and Hong Kong Airlines are also considering imposing fuel surcharges for their customers.
Kelvin Lau, an analyst at Daiwa Capital Markets in Hong Kong, said oil prices have climbed above US$80 a barrel from US$60 in the past two years, adding to the cost pressure on airlines.
Reimposing fuel surcharges will be positive for Cathay’s operations, Lau said, adding that the benefit is expected to be reflected in the company’s financial performance next year.
– Contact us at [email protected]