Greater Bay Airlines to raise fuel surcharges, joining Hong Kong rivals

Greater Bay Airlines will more than double its fuel surcharge on certain routes starting next week, becoming the last Hong Kong passenger carrier to raise prices amid the ongoing conflict in the Middle East. The airline announced on Friday that it would raise prices due to “surging fuel costs,” with the new surcharges taking effect from March 18. The charge on the carrier’s flights to Hong Kong from all destinations except mainland China, Taiwan, Japan, the Maldives and the Philippines will rise 106 per cent, from US$18 to US$37, or HK$141 to HK$290. Meanwhile, the charges on flights departing Hong Kong for all destinations except mainland China and the Maldives will increase by 104 per cent, from HK$142 to HK$290. For flights from Hong Kong to the Maldives, the fuel surcharge will rise 90 per cent, from HK$284 to HK$541. Flights in the opposite direction, meanwhile, will increase 92 per cent, from US$36 to US$69. The charges for flights from Taiwan to Hong Kong will rise 22 per cent, from US$18 to US$22. All flights between Hong Kong and the mainland will remain unaffected, as will those from Japan and the Philippines to the city. The announcement by Greater Bay Airlines, which commenced operations in 2022, makes it the last of Hong Kong’s passenger carriers to raise fuel surcharges amid the ongoing US-Israel war with Iran. On Thursday, Cathay Pacific Airways and its budget arm, HK Express, announced they would double their fuel surcharges from March 18, while Hong Kong Airlines also raised fuel surcharges by as much as 35 per cent. Some air travellers previously told the South China Morning Post that fuel surcharge hikes would not affect their plans, while others said they would cut back on spontaneous trips in response. The city is feeling the impact of ongoing conflict, which has disrupted air travel, oil exports and supply chains, prompting major airlines to cancel all flights to Dubai and Riyadh. Now entering its 14th day, the war has virtually choked off the Strait of Hormuz – where about 20 per cent of the world’s oil passes through – and forced surrounding Persian Gulf producers to curb production. US President Donald Trump has sought to contain volatile energy prices by temporarily removing some sanctions on Russian oil, while Iran has vowed to keep the Strait closed, warning that oil could reach US$200 a barrel if the war continues. The price of Brent Crude, the international benchmark, is sitting around US$100 a barrel. Before the war, it was in the low-to-mid US$70s.