The Cathay Group reported robust growth in both passenger and cargo traffic in March 2026, as shifting global travel patterns boosted demand. However, a sharp rise in jet fuel prices is placing significant pressure on the airline’s cost base.
Passenger numbers at Cathay Pacific rose 24% year-on-year in March, with first-quarter traffic up 20%. The group’s low-cost arm, HK Express, also posted strong growth, carrying more than 750,000 passengers during the month, up 22%.
Demand was driven in part by disruptions in the Middle East, which redirected traffic through alternative hubs such as Hong Kong. Major events, including Art Basel Hong Kong, alongside seasonal travel linked to Easter and Lebaran, further supported passenger volumes. Cargo demand also remained solid, with tonnage increasing 11% year-on-year.
Despite this positive momentum, airlines are grappling with a steep rise in fuel costs. According to the International Air Transport Association, average jet fuel prices have nearly doubled since late February, reaching almost $198 per barrel by early April. Cathay said surcharge adjustments have not been sufficient to offset the increase.
In response, the group will scale back a limited number of flights between mid-May and the end of June, affecting around 2% of Cathay Pacific’s services and 6% of HK Express operations. Flights to Dubai and Riyadh remain suspended amid ongoing regional instability, while additional capacity has been deployed on European routes to capture rerouted demand.
Looking ahead, Cathay expects travel demand to remain strong in the coming months but warned that market conditions will remain volatile, shaped by fuel price developments and geopolitical uncertainty. The airline aims to resume its full flight schedule after June, subject to external conditions.