Cargo fuel surcharge to resume

The Hong Kong Civil Aviation Department (HKCAD) today (10th March) announced that airlines will be allowed to resume the levying of a CARGO FUEL SURCHARGE for flights originating from Hong Kong from April 1, 2017 onwards.

Since the temporary suspension of fuel surcharges in early 2016, HKCAD has been monitoring the movements of fuel prices and reviewing the regulation on fuel surcharges and has engaged a consultant to conduct a consultancy study on the regulation of fuel surcharges. Based on the initial findings of HKCAD’s consultant, it is noted that there is a global trend of deregulating fuel surcharges to enhance competition.
As the oil price has greatly increased by almost 80% from January 2016 to January 2017, which greatly impacted on the aviation industry, particularly the air cargo market which largely operates on a long-term contract basis. In view of that and in response to the concerns of the industry, HKCAD agreed to implement a time-limited arrangement of allowing airlines to levy cargo fuel surcharge for flights originating from Hong Kong, with a view to maintaining the competitiveness of Hong Kong’s aviation industry and Hong Kong’s status as an international aviation hub.

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