Cathay Pacific to reduce flight fuel surcharges from July 1

Hong Kong-based Cathay ‌Pacific Airways 0293.HK will cut the surcharge it imposes to cover fuel costs for most of its passenger flights from July 1, its website showed on Tuesday.

Jet fuel costs roughly doubled from the start of the Iran crisis in late February to early June, before easing after Washington and Tehran struck an interim peace deal.

• Fuel surcharges for flights between Hong Kong and North America, Europe, the South West Pacific, Middle East and Africa will be cut by 14.5% from July 1, a Reuters calculation shows, from HK$1,362 ($173.73) to HK$1,164.

• Fuel surcharges for flights between Hong Kong and the South Asian sub-continent will be reduced from HK$633 to HK$541.

• For flights from mainland China to Hong Kong, the surcharge will remain at HK$135, while for those going in the opposite direction, it will stay at HK$165.

• Malaysian budget carrier AirAsia X AIRX.KL on Monday said it has lowered fares by 5% since June 15, and will review pricing week by week as jet fuel prices drop.

• Cathay Pacific had first lowered fuel surcharges in May since the beginning of the U.S.-Israeli war on Iran.

• Cathay said it will continue to review the fuel surcharge every two weeks "to better capture jet fuel price movements in either upward or downward direction".

• ($1 = 7.8398 Hong Kong dollars)

-Reporting by Xiuhao Chen and Liz Lee; Editing by Jan Harvey/Reuters