Ongoing conflicts in the Middle East have kept global oil prices high. According to a Bloomberg report on June 8, Cathay Pacific CEO Ronald Lam said the airline may reduce some flights in September if fuel prices remain elevated.
Lam stated that it is "too early" to determine whether flight cuts will be necessary starting in September, and pledged that the airline will "remain flexible" depending on the situation. He expressed hope that the impact of the Middle East conflict would become clearer by then, making further flight cancellations unnecessary. Cathay has already committed to operating all flights during the peak summer travel season in July and August.
Lam said Cathay Pacific plans to evaluate whether to adjust its fuel hedging policy to include refining costs or crack spreads in order to smooth out price volatility. Cathay Pacific hedges up to 50% of its fuel needs for the next two years. He noted that jet fuel shortages have not been an issue and are unlikely to pose a risk.
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