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The Civil Aviation Department (CAD) today (September 25) gave approval for passenger fuel surcharges levied by six airlines to be maintained or adjusted, on a short-term basis, from October 1 to November 30.
The new maximum levels of fuel surcharges will be $196 for short-haul flights and $832 for long-haul flights, which represent a reduction of 15% for short-haul flights and 10% for long-haul flights. (These airlines and their newly approved fuel surcharge levels are listed in the Annex.)
It is an international practice for airlines to levy passenger fuel surcharges. The current average passenger fuel surcharges between major international destinations are at the levels of about $445 per passenger for short-haul flights and about $1,435 per passenger for long-haul flights.
A CAD spokesman said: "When compared with the average amounts of surcharges at international level, the surcharges on the local routes remain at a lower level (short-haul and long-haul surcharges at about 44% and 58% of the international levels respectively)."
Fuel surcharges are a type of aviation tariff which requires the approval of the relevant aeronautical authorities before they can be levied. When approving applications for levying fuel surcharges, CAD will take into account changes in the prices of aviation fuel, the justification provided by the airline operators, and other relevant factors such as the charges levied by the other airlines.
"Although oil prices have recently come down considerably from historic highs, airlines still find themselves suffering from the continued high fuel costs in the previous eight months, the average of which is about 60% higher than last year. This is particularly the case for long-haul routes to destinations such as Europe, America and Africa."
"The new surcharge levels represent a reasonable balance between the interests of the travelling public and those of airlines. When approving fuel surcharges, CAD will ensure that the revenue generated will not exceed the additional costs borne by the airline operators due to increased fuel prices during the corresponding period," the CAD spokesman said.
"It is estimated that most airlines recover about 40% to 70% of their additional fuel costs through the fuel surcharges. They have to make up for the rest of the increased costs through other means such as cost management and yield improvement."
"Passenger fuel surcharges are reviewed and adjusted regularly by CAD, following the established mechanism."
The last review was done at the end of July when the maximum surcharge levels approved by CAD were $231 for short-haul flights and $924 for long-haul flights.
Ends/Thursday, September 25, 2008
Issued at HKT 15:01
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