ASIA Travel Tips.com

 

Cathay Pacific to Increase Fuel Surcharges

Search ASIA Travel Tips .com Latest Travel News Send to Friend Tuesday, 29 July 2008

Cathay Pacific has been notified by the Civil Aviation Department of Hong Kong that it has been granted approval to increase its passenger fuel surcharge.

The approval has been granted for an increase in fuel surcharges, for a two-month period effective 1 August 2008, to US$29.60 (HK$231) for short-haul services in South and North East Asia and US$118.50 (HK$924) for long-haul services.

Cathay's current surcharges are US$21.90 (HK$171) for short-haul services and US$91 (HK$710) for long-haul services.

Even with the latest increase, the airline estimates that surcharges cover less than half of the increased cost of fuel. Soaring jet fuel prices are posing an enormous challenge to the aviation industry. Jet fuel costs now account for about half of the Cathay Pacific's net operating costs, compared with 39% a year ago.

The airline issued its second-ever profit warning earlier this month, in which it said its financial performance was being materially and adversely affected by the high price of jet fuel, with the average price paid in the first half of this year 60% above that paid in the first half of last year. The most recent spot price for jet fuel was at double the average price paid in 2007.

Despite the recent drop in crude oil prices, jet fuel prices are still very expensive and higher than the levels when fuel surcharges were last adjusted two months ago.

A Cathay Pacific spokesperson said, “There is a significant time lag of two to three months from the time we submit our fuel surcharge application to the CAD to the time the new surcharges become effective. For example, the supporting information we submitted earlier this month to the CAD was based on average jet fuel prices in May and June since the last review.

“Also, the difference between jet fuel and crude oil prices had widened dramatically in recent months because of additional refinery costs, limited refinery capacity and persistent demand.”

See other recent news regarding: Airlines, Aviation, Flights, HotelsPromotions, New Hotels, Cathay Pacific, Fuel, Reductions

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address above, or return to the Latest Travel News Asia main page to see all the latest headlines. You can also stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Exclusive HD video interview with the General Manager of The Ritz-Carlton, Bali, Mr. Karim Tayach. In this HD video interview, filmed on the side lines of the AAPA Assembly of Presidents at  The Ritz-Carlton, Bali, we sat down with Ilya Gutlin President, Asia Pacific of SITA to learn more about the company and the future of air travel. Exclusive HD video interview with Mr. Luc Bollen, General Manager of The Park Lane Hong Kong, a Pullman Hotel.
The Ritz-Carlton, Bali Future of Aviation The Park Lane Hong Kong
Aviation Industry Update at AAPA 2015 in Bali.  Andrew Herdman is the Director General of the Association of Asia Pacific Airlines (AAPA) and this is the presentation he gave to a few select aviation journalists at The Ritz-Carlton, Bali on 12 November the day before the General Assembly of Presidents. Exclusive HD video interview with Air Macau's Chairman of the Board and President of Executive Committee, Mr. Zheng Yan Exclusive HD video interview with the General Manager of the JW Marriott Hotel Macau, Mr. Brian Tong.
Aviation Industry Update Air Macau's Chairman JW Marriott Macau
Exclusive HD video interview with Mr. James Mabey, Senior Vice President Development Asia Pacific for the Jumeirah Group Exclusive HD video interview with Ms. Titiya Chooto, General Manager of Anantara Siam Hotel (formerly the Four Seasons Hotel Bangkok). Exclusive HD video interview with Mr. Jonathan Wigley, Founder and CEO of one of Thailand's most successful hotel management and ownership companies.
Jumeirah Group Anantara Siam Bangkok Absolute Hotel Services
This HD video tour of Thai AirAsia X's brand new 337-seat Airbus A330-300 aircraft was filmed at Don Mueang Airport in Bangkok, Thailand on 14 May 2014 Exclusive HD video interview with Mr Wayne Mak, Managing Director of Rhombus International Hotels Group HD video of the interior and exterior of a Thai Vietjet Airbus A320-200.
Thai AirAsia X A330-300 Rhombus Int. Hotels Group Thai Vietjet A320-200
An exclusive HD video interview about the elegant Airbus A350 XWB with David Velupillai, Marketing Director for Airbus Corporate Jets at Singapore Airshow 2014 A very brief glimpse into one woman's amazing journey sailing from California to Terengganu in Malaysia ATR Demonstrates 72-600 Flight Simulator During Singapore Airshow 2014
Airbus A350 Sailing from California to Malaysia ATR Simulator
Inside Qatar Airways Boeing 787-8 Dreamliner - HD Video It takes 800 workers between 65 and 80 days to assemble, install, test, paint, furnish and deliver an Emirates Airbus A380. Showers, Bars, Lounge - The Emirates Airbus A380 Has Them All - HD Video Tour Thai Airways International Takes Delivery of Brand New Boeing 777-300ER
Qatar Airways B787 Emirates A380 Thai Airways B777-300ER

Latest Travel News
Advertising
Advertising

 
Copyright © 1997-2016 ASIATravelTips.com/TravelNewsAsia.com