Cathay Pacific to maintain capacity despite rising jet fuel costs, CEO says

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