Hong Kong Carriers Hike Fuel Surcharges Again as Jet Fuel Nears $200
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
Global jet fuel prices averaged $197 per barrel in the week ended March 20, up 98% from before the conflict began. Photo: VCG
Hong Kong’s major airlines are raising fuel surcharges again as surging jet fuel prices, driven by ongoing tensions in the Middle East, put pressure on operating costs.
Greater Bay Airlines said Friday it would raise fuel surcharges by 34% starting April 1. For flights from Hong Kong to the Maldives, the fee will increase to HK$725 ($92.5) from HK$541, while surcharges for other destinations will rise to HK$389 from HK$290.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- Hong Kong and mainland Chinese airlines are raising fuel surcharges in response to jet fuel prices nearly doubling since late February.
- Cathay Pacific’s surcharges have increased by up to 175%, with ongoing biweekly reviews, while Greater Bay Airlines raised some charges by 34%.
- Fuel now accounts for about 30-31% of airline operating costs, posing major financial challenges and potentially impacting future demand and fares.
AI generated, for reference only
Who’s Who
- Greater Bay Airlines
- Greater Bay Airlines, a Hong Kong-based carrier, announced a 34% increase in their fuel surcharges, effective April 1. For flights from Hong Kong to the Maldives, the fee will rise to HK$725 from HK$541. Surcharges for other destinations will increase to HK$389 from HK$290. This adjustment is a response to surging jet fuel prices, driven by ongoing tensions in the Middle East.
- Cathay Pacific Airways Ltd.
- Cathay Pacific Airways Ltd., Hong Kong's flagship carrier, is implementing its second round of fuel surcharge increases, effective April 1st, due to soaring jet fuel prices. Their surcharges for various flight distances have risen by up to 175% compared to pre-adjustment levels. To respond to price volatility, Cathay Pacific will now review fuel fees every two weeks instead of monthly.
- HK Express
- HK Express, a wholly-owned subsidiary of Cathay Pacific, recently increased its fuel surcharges in response to rising jet fuel prices. This move aligns with a broader trend among Hong Kong airlines, including its parent company and rival Hong Kong Airlines, to adjust fares due to increased operating costs.
- Hong Kong Airlines
- Hong Kong Airlines, a rival to Cathay Pacific, has recently increased its fuel surcharges in response to surging jet fuel prices. This move is part of an industry-wide trend among Hong Kong's major airlines to mitigate the impact of rising operating costs, driven by ongoing tensions in the Middle East. Fuel accounts for approximately 30% of airline operating expenses.
- Air China Ltd.
- Air China Ltd. is a major airline for which fuel comprised over 31% of operating costs in the first half of 2025. The company estimated that a mere 5% change in fuel prices could impact its costs by 1.22 billion yuan ($170 million), highlighting its vulnerability to fuel price fluctuations.
- China Southern Airlines Co. Ltd.
- China Southern Airlines Co. Ltd. is one of several Chinese mainland airlines that have recently begun raising fuel surcharges on some international routes. This move reflects the broader industry trend of increasing fares due to surging jet fuel prices, which significantly impact operating costs for airlines.
- Spring Airlines Co. Ltd.
- Spring Airlines Co. Ltd. (春秋航空股份有限公司) is a Chinese airline that has recently begun raising fuel surcharges on some international routes in mid-March. Additionally, they announced on March 25 that domestic fuel surcharges will also increase starting April 5. This move reflects a broader trend among airlines due to surging jet fuel prices.
- Argus
- Argus is mentioned in the article as the employer of Li Tingting, a senior refined products analyst. Li Tingting shared insights with Caixin, stating that jet fuel prices are expected to remain high and volatile in the near term.
AI generated, for reference only
What Happened When
- First half of 2025：
- Air China’s financial data showed fuel accounted for over 31% of operating costs.
- Late February 2026：
- Global jet fuel costs began a surge, noted as the period before the conflict when prices were lower.
- Mid-March 2026：
- Airlines on the Chinese mainland, including China Southern Airlines and Spring Airlines, began raising surcharges on some international routes.
- Week ended March 20, 2026：
- Global jet fuel prices averaged $197 per barrel, up 98% from pre-conflict levels.
- March 25, 2026：
- Spring Airlines announced domestic fuel surcharges will increase starting April 5, 2026.
- March 26, 2026：
- Cathay Pacific Airways announced its second round of fuel surcharge increases, effective April 1, 2026.
- March 27, 2026：
- Greater Bay Airlines announced it would raise fuel surcharges by 34%, starting April 1, 2026.
AI generated, for reference only
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新