HONG Kong’s Cathay Pacific Airways said on Thursday it will hike fuel surcharges by 34 percent across routes from April 1 and review them every two weeks, citing higher jet fuel prices driven by the war in the Middle East.
The global average jet fuel price has nearly doubled since the start of the war in the Middle East on Feb. 28, surging to $197 a barrel in the week ending March 20, according to the International Air Transport Association.
The unprecedented surge in fuel costs, which accounts for up to a quarter of the industry’s operating expenses, has upended global aviation and forced carriers to raise fares, cut capacity and revise financial outlooks.
Fuel made up about 30 percent of Cathay Pacific’s operating costs in 2025, but partial hedging that excludes the refinery component has left it vulnerable to the spike in prices, Hong Kong’s flagship airline said.
“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 Pacific said.
