HK Express cuts surcharge by 12.8% as fuel prices ease amid Mideast war

Budget carrier HK Express will cut its fuel surcharge on flights departing Hong Kong to overseas destinations by 12.8 per cent from May 16, reducing the fee by HK$50 (US$6.38) to HK$339 per leg, the airline has said. The reduction, revealed on its website on Wednesday, excludes mainland China routes, and follows lower fuel prices amid the Middle East war. The budget carrier of Hong Kong’s Cathay Pacific Airways also said the surcharge for inbound medium-haul journeys, such as those departing from Taiwan and some Southeast Asian countries, would also be cut. The route from the Philippines to Hong Kong saw the sharpest decline of 16.9 per cent, followed by those from Taiwan, Thailand, Vietnam and Malaysia. The fuel surcharge for flights from Japan and South Korea was unchanged at 11,200 yen (US$71) and 107,000 won (US$71.8) respectively. The surcharge for flights to and from the mainland also remained unchanged at HK$165 and 135 yuan (US$19.89). The adjustment follows similar moves by flagship airline Cathay Pacific and Hong Kong Airlines, which have both announced reductions in fuel surcharges. Hong Kong’s flag airline Cathay Pacific said last Friday it would slash its surcharge by as much as 12.9 per cent from Saturday, while local carrier Hong Kong Airlines said it would cut the rate from next week. In March, Hong Kong Airlines was the first local carrier to raise its fuel surcharge by up to 35.2 per cent due to the war in the Middle East. Cathay also announced that it was more than doubling its fuel surcharge the same month. According to the International Air Transport Association, the global average price of jet fuel fell by 10.1 per cent to US$162.89 per barrel in the week that ended on May 8, but still above US$99 at the end of February. Steven Cheung, the chairman of the Hong Kong Professional Airline Pilots Association, said the lower surcharge would boost the city’s competitiveness and give local airlines more operating flexibility, but warned travellers should remain cautious amid volatile geopolitics. “While the actual fare difference may be relatively small, it helps improve passenger sentiment and reinforces Hong Kong’s competitiveness as a regional hub for both passenger and cargo traffic, particularly amid ongoing fuel price volatility and regional competition,” Cheung said. Ryan Lam Chun-wang, the head of research at Shanghai Commercial Bank, said the lower surcharge was better than expected, but not an “earth-shattering turnaround”. He said that despite the reduction, fuel surcharges were still 150 per cent higher since mid-March and represented a “marked uplift”.