Airfares on Cathay Pacific and HK Express will fall next month after the airline confirmed on 23 June that it will reduce—or in some cases eliminate—its passenger fuel surcharge from 1 July. The move follows a sustained drop in jet-fuel spot prices and is expected to shave HK$80–HK$220 off typical long-haul return tickets originating in Hong Kong. The Civil Aviation Department caps surcharges quarterly; carriers can choose to levy any amount up to that ceiling. Cathay had been charging the maximum since April 2024 but will now apply about 60 percent of the permitted rate. Rival airlines are likely to match the cut, intensifying price competition during the summer peak. Travel-management companies (TMCs) welcome the change. Corporate clients booking July conferences in London and San Francisco will see immediate savings, while SMEs relying on economy-class fares to Singapore could trim travel budgets by nearly 8 percent. However, analysts caution that Middle-East tensions and refinery maintenance could push fuel higher again in Q4. Cathay says the lower surcharge supports Hong Kong’s goal of restoring pre-pandemic passenger traffic by 2027. The airline carried 2.6 million passengers in May, roughly 82 percent of 2019 levels, and expects the surcharge cut to stimulate discretionary travel among overseas Hong Kong residents. Tip for mobility managers: re-shop July and August itineraries even if tickets are already issued; most GDSs allow recalculation of surcharges before travel, potentially securing refunds.
Source: China Daily Asia / Reuters
