Middle East tensions disrupt GBA airlines, spike fuel costs

Cathay Pacific has extended cancellations of daily passenger and cargo flights to Dubai and Riyadh through March 31 amid escalating Middle East tensions, while Hong Kong Airlines raised fuel surcharges up to HKD739 per long-haul sector – a HKD150 increase – effective for tickets issued or reissued from March 12, marking its second adjustment in under two weeks.

Cathay Pacific, Hong Kong’s flagship airline, announced yesterday that it had canceled daily passenger and Cathay Cargo freighter flights to Dubai and Riyadh through March 31 amid the Middle East’s volatile situation.

“In view of the volatile situation in the Middle East, and to provide both our passengers and cargo customers with greater certainty for their planning, Cathay Pacific’s daily Dubai and Riyadh passenger flights, as well as Cathay Cargo’s freighter flights to Dubai and Riyadh, have been canceled up to and including March 31,” the airline stated.

To meet rising European demand, Cathay said it would add flights to London and increase capacity to Zurich this month.

“Affected travelers can rebook, reroute, or cancel tickets for free.”

“We continue to monitor the situation closely. The safety of our customers and staff guides every decision we make,” the carrier added.

Meanwhile, Hong Kong Airlines announced Tuesday that long-haul passengers to Europe, North America, the Southwest Pacific, the Middle East, Africa, and South Asia face a HKD739 levy, up HKD150 per single trip. Japan and South Korea routes increase 30% to USD212, mainland China flights rise by USD5, and Taiwan flights increase by USD20 for their respective new fuel surcharges.

In Macau, local carrier Air Macau raised South Korea fuel surcharges to USD17 per sector from the city starting March 1. The surcharge will be applied monthly based on fuel prices, including for children and codeshare flights, according to the company.

As of March 11, at 4 p.m., Caltex Macau stations reported gasoline at MOP16.09 per liter and diesel at MOP17.89, up from MOP15.07 and MOP16.59 on July 6, 2025 — a 6.8% gasoline hike and a 7.8% diesel increase.

The changes reflect oil prices surging past USD90 per barrel for Brent crude, reaching USD120 on Monday – the first time in nearly four years – as traders dismissed U.S. reserve release prospects.

Economists also warn that crude prices could stay elevated for weeks, as suspended oil wells require extended restarts.

DSEDT monitors oil prices

The Economic and Technological Development Bureau (DSEDT) said it is closely monitoring international crude oil prices and implementing measures to safeguard consumer rights, following recent geopolitical tensions that have caused fluctuations in global oil markets.

According to the bureau, the current unstable international geopolitical situation and the volatility of international crude oil prices have prompted the inter-departmental fuel monitoring group to continuously track the situation closely.

In addition, the initiatives are intended to promote the healthy and orderly development of the market.

According to data from the group, since the beginning of the year, there have been three price adjustments for local 98-octane unleaded gasoline and diesel.

Fuel prices at Caltex Macau stations rose to MOP16.09 per liter for gasoline and MOP17.89 for diesel as of 4 p.m. yesterday, up from MOP15.07 and MOP16.59 on July 6, 2025 — increases of 6.8% and 7.8%, respectively.

In the bureau’s response, the Companhia de Electricidade de Macau (CEM) stated that it is closely monitoring oil prices and the price of imported electricity. It indicated that there is currently no significant pressure to raise electricity tariffs. The tariff adjustment coefficient included in electricity bills is adjusted quarterly to reflect fluctuations in electricity production costs. RD