Cathay Pacific Airways (0293), chief executive officer Ronald Lam Siu-por told Reuters yesterday that the airline's short-term priority was to maintain flight capacity, adding that any cutbacks would be a "last resort" even as the conflict in the Middle East drives jet fuel prices higher.
So far, the Hong Kong-based airline has seen higher demand for its long-haul flights to North America, Europe and Australia since the U.S.-Israeli conflict with Iran began last month and significantly reduced traffic through the Middle East, Lam said.
"We do see some slight surge in demand on certain routes," he said at an event in Seattle celebrating the airline's new Seattle-Hong Kong service. "But I think the cost, the jet fuel cost situation is also concerning."
Lam said passenger and cargo demand was not going to be in a "sustainable situation" if the jet fuel price remained double its pre-conflict levels for too long.
Like many airlines, Cathay Pacific has introduced large fuel surcharges to manage the higher costs, but it has not cut capacity, unlike carriers including United Airlines, opens new tab, Scandinavia's SAS and Air New Zealand.
Reuters and staff reporter
