HONG KONG, 21 April 2026: The closing of airspace and military conflicts in the Middle East shifted demand towards other aviation hubs, generating robust passenger volumes for the Cathay Group, but jet fuel costs have skyrocketed since the start of March, Cathay Chief Customer and Commercial Officer Lavinia Lau reported last week
According to data published by the International Air Transport Association (IATA), the global average jet fuel price has increased to USD197.83 per barrel for the week ending 10 April 2026, versus USD99.40 per barrel for the week ending 27 February 2026.
“In the past month, we have pursued every suitable means to keep our flights operating as normal, including the adjustment of fuel surcharges,” Lau explained in press releases outlining March’s traffic figures. “However, these measures have not been enough to mitigate the significantly increased fuel costs. Cutting back on capacity has always been our last resort, but regrettably, we have had to consolidate a small number of passenger flights from mid-May to the end of June. This has affected around 2% of Cathay Pacific’s total frequencies and around 6% of HK Express’s total frequencies during this period.”
Beyond June, the airline plans to operate all scheduled passenger flights, subject to developments in the Middle East situation and jet fuel prices.
“We are remaining agile in our response while striving to maintain our network and frequencies as much as possible for our customers, business partners and the Hong Kong international aviation hub,” said Lau.
Cathay Pacific
Cathay Pacific carried 24% more passengers in March 2026 compared with March 2025, while Available Seat Kilometres (ASKs) increased by 9%. In the first three months of 2026, the number of passengers carried increased by 20% compared with the same period in 2025.
Demand for premium cabins was robust in March, with major events such as Art Basel Hong Kong and the Hong Kong International Jewellery Show attracting travellers from across the airline’s network. Later in the month, the group saw increased leisure travel demand in short-haul markets, as well as holiday travel during Lebaran in Indonesia and the lead-up to Easter.
The airline’s non-stop flights to Seattle also took off on 30 March 2026.
“In view of the situation in the Middle East, we have extended the suspension of our passenger flights to Dubai and Riyadh until 30 June 2026. We have also mounted additional flights and capacity to Europe in March and April to cater for an upsurge in market demand as passengers prioritised alternative routings. Overall, we expect demand to remain robust through April, supported by the Easter holidays and increased bookings on long-haul routes with more transit traffic going through our home hub,” said Lau.
Cathay Cargo
Cathay Cargo carried 11% more cargo in March 2026 than in March 2025, while Available Freight Tonne Kilometres (AFTKs) increased by 2%. In the first three months of 2026, the total tonnage increased by 8% compared with the same period in 2025.
March marked the traditional quarter-end peak period for cargo. Tonnage growth was solid across the network, particularly from the home market of Hong Kong and the wider Greater Bay Area, as well as the rest of the Chinese Mainland, Southeast Asia and Europe.
Turning to April, the group anticipates demand on long-haul trunk routes to remain healthy through the seasonal holidays. Market conditions are expected to remain dynamic and sensitive to the ongoing developments in the Middle East and the consequential capacity constraints across certain trade lanes. The group’s freighter services to Dubai and Riyadh also remain suspended until 31 May 2026.
HK Express
HK Express carried more than 750,000 passengers in March 2026, an increase of 22% year on year, while Available Seat Kilometres (ASKs) grew by 12%. In the first three months of 2026, passengers carried increased by 18% compared with the same period in 2025.
HK Express continued its growth momentum in March. Demand outpaced capacity growth, with destinations in Southeast and Northeast Asia being popular with customers. For April, leisure demand remains robust, especially during the Easter holidays. HK Express will launch daily direct flights to Wuxi starting 17 July, furthering the group’s network expansion in the Chinese Mainland, Lau reported.
(Source: Cathay Group)
