Hong Kong-based Cathay Pacific Airways will reduce fuel surcharges on most passenger flights from July 1, following a decline in jet fuel prices after recent volatility linked to the Iran conflict.
According to the airline, fuel surcharges on flights between Hong Kong and destinations in North America, Europe, the South West Pacific, the Middle East and Africa will be reduced by 14.5%. The surcharge will fall from HK$1,362 to HK$1,164 per passenger.
Flights between Hong Kong and the South Asian subcontinent will also become cheaper, with the fuel surcharge dropping from HK$633 to HK$541.
However, Cathay Pacific will maintain existing fuel surcharge rates on routes between mainland China and Hong Kong. The surcharge will remain at HK$135 for flights from mainland China to Hong Kong and HK$165 for flights in the opposite direction.
Fuel prices retreat after recent spike
The latest reduction comes after jet fuel prices eased following an interim peace agreement between Washington and Tehran. Fuel costs had surged from late February through early June amid tensions linked to the Iran crisis, before retreating in recent weeks.
Cathay Pacific had already lowered fuel surcharges in May, marking its first reduction since fuel prices climbed during the conflict.
The airline said it will continue reviewing fuel surcharges every two weeks to reflect changes in jet fuel prices.
The move follows similar action by other airlines. Malaysian low-cost carrier AirAsia X said on Monday that it had reduced fares by 5% from June 15 and would continue assessing ticket prices on a weekly basis as fuel costs decline.
Fuel surcharges are commonly adjusted by airlines to offset fluctuations in jet fuel prices and can have a direct impact on the final cost of international air tickets.
