Cathay Pacific, HK Express up passenger counts despite impact of Mideast war

Hong Kong flag carrier Cathay Pacific Airways and its budget arm had more passengers in March than a year ago, despite the impact of the United States-Israel attack on Iran.In a statement issued on Friday, Cathay Group also said it aimed to restore all flights after June. The company earlier announced it was cutting the number of Cathay Pacific flights by 2 per cent and HK Express services by 6 per cent between mid-May and the end of June.The group attributed the growth to a spate of mega-events in the city, such as Art Basel and the Hong Kong International Jewellery Show, with demand for leisure travel remaining strong for the Easter holiday in early April.“March was a month of contrast,” Lavinia Lau Hoi-zee, Cathay’s chief customer and commercial officer, said.“On the one hand, the ongoing situation in the Middle East shifted demand towards other aviation hubs and generated robust volumes on our flights.“On the other hand, the price of jet fuel has increased significantly since the start of March, and this is placing huge cost pressure on airlines around the world.”The number of passengers flying with Cathay Pacific in March stood at 2.8 million, a 24.5 per cent increase year on year.The number of fliers for the first quarter of this year was 7.98 million, which represented a rise of 19.8 per cent compared with the same period in 2025.The airline’s budget arm, HK Express, flew 750,668 passengers in March, an increase of 21.8 per cent.The carrier had 2.19 million passengers in the first quarter, up 17.6 per cent from last year.The airline’s budget arm, HK Express, flew 750,668 passengers in March, an increase of 21.8 per cent. Photo: Eugene LeeThe uptick in passenger numbers came despite Cathay halting all flights to the Middle East in March. The suspension was later extended to the end of June.Further ReadingDemand for air services also remained strong even after Cathay and HK Express raised fuel surcharges significantly last month.Lau said Cathay Group would remain agile in response to the situation in the Middle East and sought to maintain its network and frequencies.“Beyond June, we plan to operate all our scheduled passenger flights, subject to developments in the Middle East situation and jet fuel prices in the coming months,” she said.Citing data from the International Air Transport Association, Cathay noted the global average jet fuel price had increased to more than US$197 per barrel last week, compared with about US$99 in late February.Last week, Cathay Pacific and HK Express announced they were reducing flights as a result of higher jet fuel prices.Cathay’s cargo business, which is the company’s bread and butter, reported growth of 11 per cent year on year in March. In the first three months of 2026, the total tonnage increased by nearly 8 per cent compared with the same period last year.Dr Andrew Yuen Chi-lok, executive director at the Chinese University of Hong Kong’s Aviation Policy Research Centre, said travellers should expect more expensive tickets in the months to come.“Jet fuel prices have roughly doubled since late February, prompting Cathay Pacific and HK Express to raise fuel surcharges,” he said.“Elevated fares are likely to persist at least through the summer peak season, or until the Middle East situation stabilises and fuel prices ease.“Both carriers are well positioned to manage it though.“The recent modest capacity reductions are a prudent step.“Combined with higher fuel surcharges and strong load factors in traditional summer peak season, these measures should be able to largely offset the impact of higher fuel costs and any revenue loss from fewer flights in the near term.”