The Cathay Group reported a strong rise in passenger and cargo demand in March 2026, but sharply higher fuel prices are beginning to impact operations and flight schedules. Even though demand remains high in the first months of 2026, the airline warns about flight routes currently impacted and the uncertain path ahead.
Passenger Growth Remains Strong
The Hong Kong-based airline group said global jet fuel prices have nearly doubled in recent weeks, rising from around $99 per barrel at the end of February to almost $198 by mid-April. This sudden increase is putting pressure on airlines worldwide and forcing difficult decisions.
Cathay Pacific carried more than 2.8 million passengers in March 2026, a rise of around 24% compared to the same month last year. Capacity also increased, though at a slower pace, meaning flights were fuller overall, with load factors reaching over 92%.
Demand was driven by a mix of business and leisure travel. Major events in Hong Kong, including international exhibitions, brought in passengers, while holiday travel picked up across Asia ahead of Easter and regional celebrations.
Low-cost subsidiary, HK Express, also saw strong growth, carrying over 750,000 passengers in March, up nearly 22% year-on-year. Across the first three months of 2026, both airlines reported steady increases in passenger numbers, showing continued recovery and expansion.
However, ongoing tensions in the Middle East have shifted travel patterns. Cathay has extended its suspension of flights to Dubai and Riyadh until the end of June, while adding more services to Europe to meet changing demand.
Fuel Costs Force Capacity Cuts
Despite strong demand, rising fuel costs are starting to affect operations. Cathay said it will reduce a small number of flights between mid-May and the end of June, impacting about 2% of Cathay Pacific services and around 6% of HK Express flights.
Looking ahead, the Cathay Pacific group expects demand to remain steady, but warned that future schedules will depend on fuel prices and developments in the Middle East. For passengers, this could mean fewer flight options on some routes.
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