LCQ11: Impact of international oil price on stability of airline capacity
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     Following is a question by the Hon Chan Hak-kan and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (May 6):

Question:

     The intense fluctuations in international oil prices as a result of the recent upheaval in the Middle East have led to significant increases in the operating costs of airlines worldwide and flight cancellations as announced by a number of local airlines one after another. There are views that the stability of airline capacity is the "lifeline" of an international aviation hub, and fluctuations in flight frequency not only affect visitors' itineraries, but may also undermine the effectiveness of staging major events. In this connection, will the Government inform this Council:

(1) whether it knows the number and rate of flight cancellations at Hong Kong International Airport between this month and the coming two months (i.e. May, June and July) as compared with those of other international aviation hubs in neighbouring regions such as Changi Airport in Singapore, Incheon International Airport in Seoul, as well as Haneda Airport and Narita International Airport in Tokyo during that period (set out in a table); of the major routes of the flights involved;

(2) of the coping strategies adopted by the Government to ensure that airlines can minimise the impact on visitors and our status as an international aviation hub when adjusting flight frequency; whether it will consider the provision of support to the aviation industry (such as lowering or exempting airport parking charges), so as to reduce flight cancellations; if so, of the details; if not, the reasons for that;

(3) whether the Government has assessed the potential impact of the recent flight adjustments on the promotion of the "mega event economy" and related tourism activities; if so, of the details; if not, the reasons for that; and

(4) as a number of major events will be held during summer holiday, whether the Government has formulated any specific measures to ensure airline capacity, so as to maintain the appeal of such events to target visitors; if so, of the details; if not, the reasons for that?

Reply:

President,

     Due to the situation in the Middle East, major aviation fuel price index in the Asia-Pacific region increased by more than double, posing a significant challenge to the aviation industry. We understand that many international airlines, including those in the Asia-Pacific region, have cancelled some flights due to issues related to aviation fuel supply or prices.

     Nevertheless, maintaining stable air traffic capacity is crucial to consolidating Hong Kong's status as an international aviation hub. Over the past two months, the Government has maintained communication with local airlines to understand the industry's situation, as well as to emphasise the importance of maintaining the competitiveness of Hong Kong International Airport (HKIA) and remind local airlines of their critical role and social responsibilities in this regard. After actively reviewing their flight schedules, local airlines have minimised flight adjustments so far as practicable during peak travel periods to reduce the impact on passengers and the competitiveness of HKIA.

     In consultation with the Culture, Sports and Tourism Bureau, my reply to the question raised by the Hon Chan is as follows:

(1) and (2) As of May 5, 2026, the Civil Aviation Department (CAD) has received reports from airlines indicating that, for May and June 2026 (the traditional off-season for travel), overall less than 5 per cent of passenger flights to and from HKIA were cancelled, while for July 2026 (the traditional peak season for travel), overall approximately 1 per cent of flights were cancelled. However, the reasons for flight cancellations by airlines also include weather conditions, aircraft technical issues, operational considerations, and operational constraints at other airports, etc. Therefore, the above figures may not fully reflect the extent of flight cancellations caused by fluctuations in fuel prices. Despite some flight cancellations, according to provisional data provided by the CAD and the Airport Authority Hong Kong (AA), the total number of passenger flights and passenger throughput at HKIA in April 2026 still increased by approximately 5 per cent and 8 per cent respectively, year-on-year.

     The Government has requested local airlines to make necessary arrangements to minimise the impact on existing flight schedules, explain clearly to affected passengers the related arrangements after flight consolidation as soon as possible, and notify the passengers in advance of any related changes. Those arrangements include refund or other appropriate options based on air ticket conditions, so as to minimise the inconvenience caused to passengers. The Government will continue to closely monitor the service provision of local airlines.

     On the other hand, local airlines are actively turning this crisis into an opportunity. While consolidating their flight schedules, they are flexibly adjusting resources and considering increasing the frequency of flights on routes with growth potential, particularly for destinations currently being underserved due to the situation in the Middle East (for example, a local airline added three round-trip passenger flights to Paris and three round-trip passenger flights to Zurich, and increased seat capacity on its existing 13 round-trip passenger flights to London in April 2026), thereby enhancing overall operational efficiency.

     The AA has all along been setting the levels of airport charges according to commercial principles. The AA will continue to closely monitor market conditions and review airport charge levels as appropriate. 

(3) and (4) The Hong Kong Tourism Board (HKTB) will closely monitor the impact of the Middle East situation on air traffic capacity and the tourism market, as well as the latest development. The HKTB will flexibly allocate resources according to market priorities, develop a balanced visitor mix and attract high-value visitors, with a view to maximising the economic contributions of the tourism industry.

     The HKTB will continue to stage and scale up the flagship events, enhance their promotions, and extend the event operating hours and periods to encourage visitors to stay longer in Hong Kong to fully enjoy the mega events experiences. Besides, the HKTB will continue to update the mega events calendar on Discover Hong Kong, its one-stop travel information platform, with information on major events across the city to help visitors plan their trips to Hong Kong in advance. The HKTB will also continue to partner with the food and beverage, retail, hotel and shopping mall sectors to roll out thematic offers and joint promotions in summer and winter, anchoring city-wide mega events to stimulate visitor spending.

     The content and quality of the mega event itself are important factors in attracting visitors. Changes in travel patterns of visitors will also bring new opportunities for Hong Kong. For example, the Hong Kong Sevens held last month attracted more than 113 000 local and non-local spectators, a 2.24 per cent increase from the previous year. The proportion of non-local attendees remained similar to that of the previous year, and there is no indication so far that non-local attendance has been significantly affected by the rise in prices of air services caused by higher fuel costs. In the first quarter of this year, the number of visitors to Hong Kong exceeded 14.3 million, a 17 per cent increase compared with the same period last year, reflecting the continued growth in Hong Kong's appeal as a tourist destination. Through the combined effect of "Mega events + Tourism", the HKTB aims to convert visitor footfall into spending, and transform short-term buzz into long-term city reputation and economic benefits, thereby consolidating Hong Kong's position as the Events Capital of Asia.

Ends/Wednesday, May 6, 2026
Issued at HKT 11:00

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