Hong Kong carrier Cathay Pacific Airways said on Thursday it will increase fuel surcharges on its flights by 34% starting April 1, as surging jet fuel prices strain airline operating costs.
The airline said the surcharge adjustment will apply across its routes and will be reviewed every two weeks depending on movements in global fuel markets.
The sharp rise in aviation fuel prices has been driven by supply disruptions linked to the ongoing war in the Middle East, which has unsettled global energy markets.
Data from the International Air Transport Association (IATA) shows the global average jet fuel price nearly doubled to about $197 per barrel in the week ending March 20 since the conflict began on February 28.
Fuel is one of the largest expenses for airlines, accounting for as much as a quarter of industry operating costs and forcing many carriers worldwide to raise ticket prices, trim capacity and revise financial forecasts.
Cathay Pacific said fuel represented roughly 30% of its operating costs in 2025, adding that its partial hedging strategy which does not cover the refinery component of fuel has exposed the airline to the recent price surge.
The Hong Kong-based airline warned that the steep rise in fuel costs could threaten the sustainability of its flight network if not managed effectively.
It said the surcharge increase is part of broader measures to offset higher expenses while maintaining operations across its global routes.
The move highlights growing pressure on airlines worldwide as energy costs climb sharply amid geopolitical tensions.
Industry analysts say carriers may continue adjusting fares and surcharges in the coming months if fuel prices remain elevated.