Hong Kong Airline Companies Double Up On Fuel Surcharges

With the on-going war between US-Israel and Iran, there have been repeated attacks on oil facilities across the Middle East. These strikes have caused major shipping disruptions in the Strait of Hormuz, a critical passage through which roughly 20% of the world’s oil passes. This supply constraint, coupled with high demand, has caused crude oil prices to spike, driving up gasoline, diesel, and airline fuel costs worldwide.  In fact, fuel prices have doubled since the start of March. Many are now struggling to cope with the sharp rise, and some countries have even urged people to limit private car use due to tight supply. As for Hong Kong, airline companies have already announced increases in the fuel surcharge. Here’s what we know so far.

Here’s what you should know about Middle East travel, airspace closures, cancelled flights and more.

Cathay Pacific and Hong Kong Airlines increase their fuel surcharge

Hong Kong Airlines recently announced that it would increase all its fuel surcharges by 35% starting from March 12. Travellers flying between Hong Kong and the Maldives, Bangladesh, and Nepal will see the steepest hike, up 35.2%, from HKD 284 (approximately INR 3,232) to HKD 384 (approximately INR 4,367). For flights between Hong Kong and destinations in East or Southeast Asia (including Japan, South Korea, Thailand, and Singapore) surcharges will rise by 30%, bringing the new total to HKD 212 (approximately INR 2,411). Meanwhile, surcharges on flights between Hong Kong and Taiwan will increase by HKD 20 (approximately INR 228) per trip to HKD 182 (approximately INR 2,071), while routes to Mainland Chinese cities will see a more modest rise of HKD 5 (approximately INR 57), bringing the charge to HKD 190 (approximately INR 2,162).

As for Cathay Pacific, tickets issued on or after March 18 will see fuel surcharges rise by as much as 50%. For medium-haul flights between Hong Kong and destinations in the South Asian subcontinent, the surcharge will jump to HKD 541 (approximately INR 6,152), up from HKD 264 (approximately INR 3,003). Short-haul flights, meanwhile, will now carry a fuel surcharge of HKD 290 (approximately INR 3,300) per trip, nearly double the previous HKD 142 (approximately INR 1,616). Cathay Pacific has also extended its flight cancellations to and from Dubai and Riyadh until the end of March. And to cope, the carrier will offer more passenger flights to London instead.

There hasn’t been much word yet on whether HK Express will follow suit with similar increases.

As for the conflict itself, U.S. President Donald Trump has stated that the war will soon come to an end, which could help stabilise fuel prices. Only time will tell.

This story first appeared here.

(Feature image credit: Fabrian Pradanaputra/Pexel)

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Note:
The information in this article is accurate as of the date of publication.

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