Following is a question by Dr the Hon Chan Han-pan and a reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (May 20):

Question:

     Some members of the industry have relayed that, given the Government's implementation of cargo fuel surcharge (CFS) liberalisation last year, followed by significant increase in CFS of certain airlines this year, they are concerned that the rising operating costs may undermine the competitiveness of Hong Kong's air cargo industry. In this connection, will the Government inform this Council:

(1) whether the Government has monitored and assessed the changes in the levels of CFS levied on cargo routes originating from Hong Kong since implementation of the liberalisation; of the measures put in place by the Government in response to the significant increases in CFS to stabilise the costs of air cargo services in Hong Kong, and whether it will step up monitoring efforts and require airlines to enhance the transparency of their CFS adjustment mechanisms, including disclosure of the basis for determining the levels of CFS;

(2) whether it has assessed the actual impact of rising costs of air cargo services on the air cargo throughput and competitiveness of the Hong Kong International Airport; of the specific measures in place to consolidate Hong Kong's position as an international air cargo hub and the international gateway to the Guangdong-Hong Kong-Macao Greater Bay Area; and

(3) whether the Government will introduce targeted support measures or re-launch appropriate measures to regulate CFS as an effort to alleviate the cost pressures faced by the industry (particularly small and medium sized freight forwarders and cross-border e-commerce logistics service providers), as well as establish mechanisms and maintain communication with the industry to regularly review the cost structures of Hong Kong's air cargo industry?

Reply:

President,

     In response to the impact of the Middle East situation and aviation fuel prices on airlines and the cargo industry, the Government has maintained close communication with the industry, responded promptly to their concerns, and facilitated the industry in turning challenges into opportunities by exploring new cargo potential and reinforcing Hong Kong's leading position in air cargo.

     My reply to the question raised by Dr the Hon Chan is as follows:

(1) Over the past two months, the Government has held multiple meetings with local airlines and arranged two joint meetings between local airlines and the cargo industry to better understand the situation and urge local airlines to strengthen communication with the trade. As aviation fuel prices have eased slightly recently, several local airlines have made two rounds of downward adjustments to their cargo fuel surcharges (CFS). Local airlines have also introduced a new medium haul category for CFS to respond more flexibly to market demand. The Government will continue to closely monitor adjustments to fuel surcharges to ensure the process remains reasonable and transparent.

(2) Hong Kong International Airport (HKIA) retained its position as the world's busiest cargo airport in 2025, handling 5.07 million tonnes of cargo, marking its 15th time topping the global ranking since 2010. HKIA boasts a robust network of airlines and destinations. Currently served by approximately 140 airlines, it connects to some 220 destinations worldwide, providing competitive capacity and service support for Hong Kong's air cargo industry.

     Hong Kong's flight approval process is efficient and transparent, enabling airlines to flexibly adjust capacity to meet sudden surges in passenger and cargo demand arising from the Middle East situation. Since early March 2026, the Civil Aviation Department has approved about 820 additional flight applications and expedited the processing of around 4 100 flight adjustment applications. We are actively engaging airlines to encourage them to deploy extra cargo capacity to connect HKIA with destinations currently experiencing service shortfalls due to the Middle East situation. In fact, as of April this year, HKIA recorded 1.63 million tonnes of cargo throughput, representing a 3.7 per cent year-over-year increase, while cargo flight movements rose by 3.2 per cent, i.e. approximately 25 000 additional movements, compared with the same period last year.

     To further expand the air cargo network, the Airport Authority Hong Kong (AA) launched the Freighter Network Development Programme in March 2026, offering financial incentives to encourage cargo airlines to increase their freighter services at HKIA, thereby enhancing cargo connectivity and network resilience. The programme is expected to boost freighter flight frequencies by more than 15 per cent.

     In terms of regional collaboration, the AA is strengthening logistics co-operation in the Greater Bay Area and facilitating cross-boundary intermodal cargo transshipment. Through the innovative HKIA Dongguan Logistics Park project, we are enhancing connectivity between HKIA and manufacturing and logistics hinterland in the Greater Bay Area via sea-air intermodal transshipment. Upon full operation of the logistics park, operating costs are expected to be reduced by around 50 per cent, while cargo processing time can be shortened by approximately one-third. To further facilitate cargo transshipment, the Government will amend the relevant legislation within this year to extend the current arrangements under the Air Transshipment Cargo Exemption Scheme to cover other intermodal transshipment modes, including sea-to-air transshipment.

     In addition, the AA has been actively promoting smart development and spearheading the digitalisation of the air cargo supply chain. The one-stop digital platforms HKIA Cargo and HKIA Cargo Connect, managed by the AA, provide an innovative, smart and interconnected digital ecosystem for the industry. More than 50 per cent of Hong Kong's import and export cargo volume is now handled through these platforms, improving operational efficiency and helping companies explore new business and partnership opportunities.

(3) Airlines can now decide whether to impose fuel surcharges and at what level for flights departing from Hong Kong. To ensure transparency, airlines have published on their websites or on the AA's digital platform HKIA Cargo the maximum CFS levels applicable to flights departing from Hong Kong as required.

     In response to the recent downward adjustment in fuel prices, local airlines have correspondingly lowered their CFS, demonstrating that the existing mechanism provides sufficient flexibility for local airlines to make appropriate adjustments according to market conditions. At the same time, the Government's recent diesel subsidy and tunnel toll waiver have also helped relieve pressure on the local cargo and logistics sector arising from rising operating costs. The Government will continue to closely monitor the situation.

     Thank you, President.

Ends/Wednesday, May 20, 2026
Issued at HKT 12:45

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