HongKongCarriersHikeFuelSurchargesAgainasJetFuelNears$200

Hong Kong’s major airlines are raising fuel surcharges again as surging jet fuel prices, driven by ongoing tensions in the Middle East, put pressure on operating costs.

Greater Bay Airlines said Friday it would raise fuel surcharges by 34% starting April 1. For flights from Hong Kong to the Maldives, the fee will increase to HK$725 ($92.5) from HK$541, while surcharges for other destinations will rise to HK$389 from HK$290.

The move follows an announcement a day earlier by the city’s flagship carrier, Cathay Pacific Airways Ltd., of its second round of increases, also effective April 1. The airline’s surcharges for short-, medium- and long-haul flights have risen by as much as 175% from levels prior to the latest adjustments. Cathay Pacific said it will review fuel fees every two weeks instead of monthly as a temporary measure to respond more quickly to price volatility.

Cathay Pacific’s wholly owned subsidiary HK Express and rival Hong Kong Airlines have also raised surcharges recently, signaling a marketwide response to rising costs.

The series of fare increases underscores the aviation industry’s struggle with soaring fuel costs, which have nearly doubled since late February. Global jet fuel prices averaged $197 per barrel in the week ended March 20, up 98% from before the conflict began, according to S&P Global Energy. With fuel accounting for about 30% of an airline’s operating expenses, the surge poses a significant challenge to an industry expected to post global net profit margins of just 3.6% in 2025.

The vulnerability of carriers is evident. For a major airline such as Air China Ltd., fuel accounted for more than 31% of operating costs in the first half of 2025. The company estimated that a 5% change in fuel prices would affect costs by 1.22 billion yuan ($170 million).

The trend extends to the Chinese mainland, where airlines including China Southern Airlines Co. Ltd. and Spring Airlines Co. Ltd. began raising surcharges on some international routes in mid-March. Spring Airlines said March 25 that domestic fuel surcharges will be increased starting April 5.

Jet fuel prices are likely to remain elevated and volatile in the near term, Li Tingting, a senior refined products analyst at Argus, told Caixin. However, she noted that persistently high prices could damp demand, prompting airlines to cut capacity and potentially limiting further sharp increases if crude oil prices stabilize.

Contact editor Han Wei (weihan@caixin.com)