Cathay Pacific to lift passenger fuel surcharges soon: CEO

Cathay Pacific Airways (0293) will soon raise its passenger fuel surcharges as oil prices surge on the Middle East conflict, chief executive Ronald Lam Siu-por said. 

Lam said at the post-earnings press conference that average fuel prices more than doubled in March compared to the Jan-Feb period due to the Iran war, and the carrier would need to lift surcharges to ensure normal flight operations.

Cathay’s projected fuel hedging cover is around 30 percent this year, and the group does not have plans to change the hedging strategy despite a spike in oil costs, Lam said.

The airline has cancelled the flights to Dubai and Riyadh until the end of March, and the capacity will be used for Europe-bound flights, said chief customer and commercial officer Lavinia Lau Hoi-zee.

There is an upsurge in demand for long-haul flights, especially to Europe, as customers seek alternative routes from Middle East hubs, leading to a spike in fare prices, she said. 

While there is an increase in cargo demand for Europe due to the war, freighters would need to carry more fuel to fly nonstop to the continent, which would negatively affect their capacity, Lau said. 

On the low-cost carrier HK Express’ loss, Lam said demand for flights to Japan has returned to normal after the earthquake rumors, and that he is confident in the long-term future of the airline.

Lam said the carrier’s performance improved in the first two months of 2026, though it remained difficult to tell when it would be back in the black.