Hong Kong: 13 Airlines' Fuel Surcharge Requests Approved
May 26, 2008
Hong Kong's Civil Aviation Department has given approval for 13 airlines to keep or adjust their passenger fuel surcharge levels.
Most airlines will boost their surcharges for short haul flights from HK$125 per passenger to HK$171, while surcharges for long haul flights will rise from HK$518 to HK$710, effective from June 1 to July 31.
The department said the surcharges on the local routes remain at a reasonable level compared with surcharges at the international level. Short-haul and long-haul surcharges amount for about 41% and 68% of the international levels.
The department approved the applications after considering the changes in aviation fuel prices, the airline operators' justifications, and other factors including the charges of other airline levies.
Aviation fuel prices have shot up 50% this year so far, which has had a serious impact on airlines' operating costs. The department will ensure the revenue will not exceed additional costs the airline operators bear due to increased oil prices.
The department estimated most airlines would recover about 40% to 70% of their additional fuel costs through the fuel surcharges.