The head of Hong Kong-based Cathay Pacific Airways announced Monday that preserving flight schedules remains the company’s immediate focus, stating that reducing service would only happen as a “last resort” despite escalating jet fuel expenses tied to Middle Eastern tensions.
Chief Executive Ronald Lam revealed that his airline has experienced growing interest in extended routes to North America, Europe and Australia following the outbreak of U.S.-Israeli tensions with Iran last month, which has dramatically decreased air traffic through Middle Eastern hubs.
Speaking at a Seattle ceremony marking the launch of the carrier’s new Seattle-Hong Kong route, Lam acknowledged seeing increased bookings on specific flight paths. “We do see some slight surge in demand on certain routes,” he explained to Reuters. “But I think the cost, the jet fuel cost situation is also concerning.”
The airline executive warned that current passenger and freight demand levels would not remain in a “sustainable situation” should jet fuel prices continue at twice their pre-conflict rates for an extended period.
While Cathay Pacific has implemented substantial fuel surcharges to offset rising expenses similar to other carriers, the company has avoided reducing flight capacity – a step already taken by competitors such as United Airlines, Scandinavia’s SAS and Air New Zealand.
