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Cathay Pacifc and Air Pacific to increase fuel surcharges

1-Sep-2005

SYDNEY (Centre for Asia Pacific Aviation) - Cathay Pacific announced plans to increase its passenger fuel surcharge in Sep-05, subject to Hong Kong Civil Aviation Department approval. The planned increase was not disclosed. The airline charges an additional USD42.60 per sector on long haul services and USD11 on short haul services.

We know people don't like paying, but they seem remarkably resigned. There's no sign [of an impact from fuel surcharges] in terms of level of demand. In terms of anecdotal evidence, we don't get people shouting at us…More routes will come under the microscope [if fuel prices remain high]”, stated Tony Tyler, Cathay Pacific COO.

Air Pacific announced it would increase fuel surcharges on all services from 02-Sep-05:

  • Shorthaul: From USD38 to USD42 per sector;
  • Longhaul (US, Canada and Japan): From USD50 to USD57 per sector.

Meanwhile, Air Deccan, Jet Airways and Air Sahara are considering imposing a fuel surcharge and/or increasing fares, as state oil firms announced a 5% increase in jet fuel prices.

 "Oil prices have been increasing since March this years we have been absorbing the impact since then. With the prices going up, we have to look at other options," unnamed Jet Airways Executive.

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