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Cathay Pacific latest to impose fuel surcharges

October 2, 2018 Headline News No Comments Email Email

As the price of oil soars, Cathay Pacific and Cathay Dragon have confirmed that surcharges will be included on all tickets issued or re-issued on or after 2 November 2018.

The surcharge is on a per flight sector basis irrespective of fare type. It is included in the fare quoted on all the airline’s direct channels. The charge is likely to be USD 83.6 (about AUD 116), though it depends on route and origin. For full details see here.

Cathay’s move follows a decision by Hong Kong’s Civil Aviation Department to deregulate the surcharges, and a statement: “Under the new display requirements, airlines will need to provide the final price of air tickets at all times and provide a breakdown of the final price to show all ‘must pay’ elements of the ticket fare in each at their direct sales outlets.”

Hong Kong’s South China Morning Post noted that crude oil is closing in on USD 80 a barrel. “The last time oil was around that price four years ago, airlines slapped an extra HKD 623 (USD 79.80) on long-haul ticket prices and HKD 143 for regional trips.”

The share prices of leading Australian travel companies and airlines dipped last week after oil prices rose strongly. See: Oil price leap and UK heatwave hit Aussie travel stocks

The Brent crude oil price climbed above the USD 80 a barrel mark for the first time in four years.

In August, Malaysia Airlines reintroduced and implemented a fuel surcharge for tickets issued or re-issued for travel on its flights from ASEAN (except Malaysia and the Philippines), Middle East, Greater China (except Hong Kong), South Korea, Australia and New Zealand, from 13 August 2018 “in line with the rising fuel prices and consistent with most international carriers across the globe”.

Written by Peter Needham

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