• The ongoing volatile situation in the Middle East continues to have a significant impact on the price of jet fuel and this is placing considerable pressure on airlines around the world. 
• The jet fuel that aircraft use is made by refining crude oil, and so the price of jet fuel comprises both the crude oil component and the refinery component, both of which have increased significantly in recent weeks. 

According to the latest price data published by the International Air Transport Association (IATA), the global average jet fuel price increased to US$197.00 per barrel for the week ending 20 March 2026, increasing from US$157.41 per barrel for the week ending 6 March 2026, and US$95.95 per barrel for the week ending 20 February 2026.

Breaking this down, crude oil increased to US$110.78 per barrel for the week ending 20 March 2026. At the same time, the refinery component (weekly average crack spread) increased to US$86.22 per barrel for the week ending 20 March 2026, increasing from US$72.26 per barrel for the week ending 6 March 2026, and US$24.48 per barrel for the week ending 20 February 2026. Together, these increases illustrate the sharp rise in overall jet fuel price.

Fuel accounted for approximately 30 percent of Cathay Pacific’s total operating costs in 2025 and is critical to our operations. If the steep increase of fuel costs cannot be effectively mitigated, we would not be able to sustain the effective operations of our network.

Like many airlines, Cathay undertakes fuel hedging to manage fuel price volatility. However, in 2026 our hedging covers only around 30 percent of the crude oil component and hedging does not apply to the refinery component, making this measure insufficient given the scale of the recent surge in jet fuel price.

Fuel surcharge is another important mechanism to mitigate and recover a portion of our incremental fuel costs. Given the current situation, many airlines globally have implemented fuel surcharges around the world at comparable levels in response to the increase in jet fuel price.

Cathay Pacific announces that it will be adjusting the fuel surcharge effective 1 April 2026 as follows:

• Short-haul flights: HK$389 (from the current HK$290, increase of HK$99).
• Medium-haul flights: HK$725 (from the current HK$541, increase of HK$184).
• Long-haul flights: HK$1,560 (from the current HK$1,164, increase of HK$396).

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