Cathay to cut fuel surcharges from May 16

Hong Kong's flagship carrier Cathay Pacific announced on Friday it is reducing fuel surcharges for long-haul flights by about HK$200 to HK$1,362 from HK$1,560 currently, starting from next Saturday. It will also be cutting the fuel surcharge for short-haul flights by HK$50 to HK$339 from HK$389, also effective from May 16. The reductions apply to tickets bought in the SAR. In a statement, it said that it's continuing to review its fuel surcharges every two weeks to better capture the jet fuel price movements, following volatilities arising from the conflict in the Middle East. "This increased frequency is intended as a temporary measure and will be revisited when the Middle East situation stabilises," it added. The latest adjustments came as global benchmark Brent crude futures were still close to the US$100-a-barrel level. Cathay noted that the cost of jet fuel is influenced by the price of both crude oil and the refinements made to it. Both components have risen significantly since the start of March and remain at "highly elevated levels", it said. Edited by Tony Sabine