Travellers planning mid-year trips may face disruptions as Cathay Pacific announced a temporary reduction in its flight capacity, citing sharply rising jet fuel costs linked to ongoing geopolitical tensions in the Middle East.
The Hong Kong-based carrier revealed that approximately 2 per cent of its scheduled passenger flights will be cancelled between May 16 and June 30. Its budget subsidiary, HK Express, will also scale back operations more significantly, cutting around 6 per cent of its capacity from May 11.
In addition, the airline confirmed that its suspension of passenger services to Dubai and Riyadh will remain in place until the end of June, extending earlier precautionary measures.
RISING FUEL COSTS PUT PRESSURE ON AIRLINES
The airline attributed its decision to escalating fuel expenses, which form a significant portion of operating costs in the aviation sector. Jet fuel prices have surged in recent weeks due to supply concerns and instability in key oil-producing regions.
Data from the International Air Transport Association showed that the global average price of jet fuel climbed to approximately US$209 per barrel (around S$266), more than doubling from about US$99.40 (roughly S$126) recorded just over a month earlier.
Industry observers note that jet fuel pricing is influenced by both crude oil rates and refining costs, both of which have been rising sharply. This has forced airlines worldwide to reassess capacity, routes, and operational efficiency.
Despite the temporary cutbacks, Cathay Pacific stressed that such measures are only implemented as a last resort. The airline apologised to passengers for the inconvenience and reiterated its commitment to maintaining service reliability where possible.
EXPECTED RECOVERY AFTER JUNE
Looking ahead, both Cathay Pacific and HK Express indicated that they expect to restore full operations once market conditions stabilise. Normal flight schedules are projected to resume after June, provided fuel costs ease.
However, uncertainties remain. Although there has been a short-term ceasefire involving the United States and Iran, analysts believe this is unlikely to immediately bring down fuel prices.
A key concern continues to be the Strait of Hormuz, a vital route for global oil shipments. Even if fully reopened, supply constraints and elevated costs are expected to persist in the near term.
For travellers, this development highlights the broader impact of global events on air travel. From fluctuating ticket prices to reduced flight availability, passengers may need to plan ahead and remain flexible as airlines navigate a volatile operating environment.