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Cathay Pacific cites dual impact on demand from war in Iran
April 20th 2026
Cathay Pacific said its passenger traffic for March was boosted by the Israel and U.S.-led war on Iran as the closure of aviation hubs in the Gulf region prompted travellers to seek alternate routes to Europe. Read More » However, the airline said the sharply rising cost of jet fuel had led to increased fuel surcharges on fares and flight cancellations equivalent to 2% of Cathay Pacific’s total frequencies and 6% of LCC HK Express’s network through to the end of June. "March was a month of contrast," Cathay chief customer and commercial officer, Lavinia Lau, said. "On the one hand, the ongoing situation in the Middle East shifted demand towards other aviation hubs and generated robust volumes on our flights. On the other hand, the price of jet fuel has increased significantly since the start of March and this is placing huge cost pressure on airlines around the world." Cathay Pacific flew 2.8 million passengers in March, up 24.5% from 2.3 million in the same month in 2025. HK Express grew passenger numbers 21.8% to 750,668 in the month. Lau said the airline group planned to operate all its scheduled passenger flights from the start of July, subject to developments in the Gulf region and jet fuel prices in the period ahead. "We are remaining agile in our response while striving to maintain our network and frequencies as much as possible for our customers, business partners and the Hong Kong international aviation hub," Lau said in a regulatory filing.
