Cathay Pacific Airways, Hong Kong's largest carrier, is holding off on raising its economy-class prices ... for now.

After the airline increased its first- and business-class prices, Chief Executive Tony Tyler said that whether a price hike is pushed onto economy class passengers will depend on the effectiveness of new cost-cutting measures.

The future cost of oil will also be factored in, he said.

"It is inevitable that people will have to pay for the costs of services, but we will make sure that people can afford to fly," Tyler said, noting that the company will try to offer deals to economy-class customers, while keeping airline revenue up with the inflating costs.

Cathay Pacific started its redeployment of services on July 11 and raised fares by 3 to 15 percent for first- and business-class passengers on most routes to and from Hong Kong.

The measures come after Cathay Pacific's profits-warning announcement earlier this month hinted at a disappointing first half for the company as costs soared.

Tyler said the industry is facing a crisis more severe than it experienced during the SARS outbreak in 2003 and after the terrorist attacks on the US.

He said the company has done everything it can to control the rising costs, such as rearranging its flights and flying slower.

"We have reduced the number of flights to North America while increasing those to places with increasing demand, including Australia and the Middle East," Tyler said.

Meanwhile, Cathay Pacific has ordered 30 new Boeing aircraft, which will use about 22 percent less fuel. The company has managed to reduce its operation costs by 30 percent in the last 10 years.

Tyler said that if the fuel prices continue to rise, there will be significant changes in the industry.

Yet, it is unlikely to trigger consolidation, he said, noting that cross-border consolidation would be politically sensitive, and a merger between airlines won't help solve the fuel-price problem.