Cathay Pacific to Continue Fuel Surcharges
By Vicki Kwong, Shanghai Daily | Sep. 25, 2006
Cathay Pacific Airways Ltd will extend ticket surcharges beyond this month to help cover higher fuel costs, Bloomberg reported.
The Hong Kong-based airline won approval to collect the levies until November 30, Hong Kong Civil Aviation Department said on its Website. Cathay will maintain its fees at HK$481 (US$62) for each leg of a long-haul flight, and HK$117 for each flight within Asia, the regulator said.
Like other Asian carriers, Cathay has imposed surcharges to pass some of the increase in fuel prices on to travelers. The levies help Cathay recoup about 60 percent of the additional costs, Chief Executive Philip Chen said last month.
Jet kerosene, the biggest expense at most Asian airlines, rose 0.6 percent to US$76.25 a barrel in Singapore on Friday, according to Bloomberg data. The price of the fuel has gained 6.8 percent this year.
Hong Kong Dragon Airlines Ltd, which Cathay is buying, and 10 other carriers will also extend fuel surcharges until November 30, the regulator said.
Dragonair will keep its levy at HK$117 for all flights, the Civil Aviation Department said. China Southern Airlines Co, Air China Ltd and China Eastern Airlines Corp will impose the same charge for flights through Hong Kong.