Cathay Pacific to Reduce Fuel Surcharges

Cathay Pacific has been granted Hong Kong Civil Aviation Department approval to adjust its passenger fuel surcharge. For a two-month period effective 1 December 2008, Cathay will reduce its fuel surcharge to HK$108 (US$13.8) for short-haul services in South and North East Asia and HK$499 (US$64) for long-haul services.

The adjustments represent reductions of 45% and 40% respectively from the current surcharges which are HK$196 (US$25.1) for short-haul services and HK$832 (US$106.7) for long-haul services.

A spokesman for Cathay Pacific  said, “Airfares have come down substantially over the past few months as a result of market forces and our own tactical promotions, including the World Pass and Getaway Surprise. We believe the reduced fuel surcharges will further help to make air travel and overseas holidays more affordable and attractive.”

Jet fuel costs continue to account for about half of Cathay Pacific's net operating costs so far this year, and the adjustments in fuel surcharges can only offset less than half of the airline’s increased fuel cost.

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