Cathay Pacific Airways Ltd, Hong Kong's largest airline, and other carriers flying from the territory, said they will raise a surcharge on air cargo by a third beginning today to cover higher costs of jet fuel.
Members of Hong Kong's Board of Airline Representatives, which include all carriers flying to and from the city, will raise long-haul cargo surcharge by a third to HK$1.60 (US$0.20) a kilogram and by 33 percent to HK$0.80 a kilogram for short-haul flights, said Grace Ng, a spokeswoman for the city's Civil Aviation Department.
Asian airlines are raising freight charges to counter the cost of jet fuel, which rose 75 percent over the past year to a three-and-half year high of US$47.92 a barrel last Friday. The price of jet fuel, typically about a fifth of an airline's operating costs, has been increasing because of rising demand and reduced production by refiners.
"When fuel prices go up for a certain period, we'll raise the fuel surcharge," said Lisa Wong, a Cathay Pacific spokeswoman in Hong Kong.
The price of jet fuel in Singapore, Asia's biggest oil- trading center, rose to US$47.92 a barrel on Friday, according to oil-pricing service Platts. That's the highest price since October 2000.
Short haul flights are routes from Hong Kong to destinations in Asia while long hauls are services to the US, Europe, the Middle East, Africa and South Pacific islands, according to Hong Kong's civil aviation department.
The surcharges will only apply to cargo departing from Hong Kong, Ng said.
China Airlines Ltd (華航) and Hong Kong Dragon Airlines Ltd raised fuel surcharges on cargo flights from this country last month by as much as a third.
The shares of Asian airlines fell on concern rising jet fuel prices will erode their earnings.
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