Cathay Pacific Airways, Hong Kong's dominant carrier, and other airlines will lower passenger fuel surcharges by up to 3.4 percent with effect from April, the first cut since the costs were imposed last June.

The Hong Kong Civil Aviation Department said that by March 27 it had approved applications from 28 airlines to extend fuel surcharges through to April and May.

Of the 28 carriers, 22 had requested a 3.2 percent to 3.4 percent cut in fuel surcharges compared with those charged in February and March.

The airlines must seek government approval regarding fuel surcharges every two months.

Cathay will reduce its surcharge on short-haul flights by 3.2 percent to HKD$90 (USD$11.50) per ticket and by 3.4 percent on long-haul flights to HKD$370.

Cathay currently charges its customers an additional HKD$93 on short-haul flights and HKD$383 on long-haul flights.

Air China, China Eastern Airlines, China Southern Airlines, Dragonair, Shandong Airlines, Shenzhen Airlines and Xiamen Airlines, will lower their surcharges by 3.2 percent to HKD$90 per ticket from April 1.

A further five airlines asked for an extension of their current surcharge, while Finnair requested that fuel surcharges be increased by 20.1 percent and 36.5 percent, respectively, for its flights linking Hong Kong and Bangkok, and Hong Kong and Helsinki.

Fuel accounts for a large share of airlines' costs and record high prices last year have severely crimped earnings.

Investors also worry that higher ticket prices could eventually curb travel demand.