'The situation is having a very serious financial impact on airlines worldwide and Cathay Pacific is no exception. Jet fuel prices now account for 40 per cent of the airline's net operating costs, compared with 30 per cent last year,' he said.

Nonetheless, the airline remains resolutely optimistic, with advance bookings continuing to look steady and new flights to the Indian cities Mumbai, New Delhi and Chennai boosting revenue.

And the good news for prospective employees is that Cathay has no plans to shelve expected recruitment.

'Cathay Pacific continues its ongoing recruitment activities. It is our target this year to recruit about 1,400 cabin crew, 300 pilots and 300 ground staff to meet the operating needs for our expanding fleet of aircraft,' Mr Cheng said.

There are openings for graduates on various recruitment programmes, including those covering management, customer services, cadet pilots, engineering and industry training.

Other vacancies requiring experience are also available. The airline also intends to proceed with scheduled additions to the fleet.

'There is no intention to delay or defer our aircraft delivery schedule. Our plan to grow capacity at an average of 6 to 7 per cent per annum remains unchanged.

'Aviation is a cyclical business and we need to plan ahead to ensure sufficient capacity for future expansion,' he said.

There are 46 aircraft on order for the Cathay Pacific fleet, which now consists of 117 aircraft and is scheduled to grow to 153 aircraft by 2015 - or 200 aircraft in the group fleet, which includes Dragonair and Air Hong Kong.

Cathay will also make further improvements in efficiency, including the introduction of greener, more fuel-efficient aircraft.

'We will continue to enhance our service proposition and competitiveness through better product and service offerings. Our new aircraft - primarily Boeing 777-300ER and Boeing 747-8F - are very fuel efficient and this is particularly important in this operating environment,' he said.

Taiwan is an important market for Cathay and its sister company, Dragonair, operates more than 130 flights per week. There has been some speculation that the recent improvement in relations between the mainland and Taiwan may lead to direct cross-strait flights and a consequent reduction in flights between Hong Kong and Taiwan.

'There is some uncertainty on how soon the full-scale cross-strait direct link will take place. As cross-strait traffic grows, the triangular mainland-Hong Kong-Taiwan traffic will also grow with the role of Hong Kong as the centre for trade, commerce and finance gaining further importance,' Mr Cheng said.

While acknowledging that times are tough, Singapore Airlines prefers to focus on how it can beat off the competition.

The airline believes that its customers, especially in mature markets such as Hong Kong, are looking beyond the ticket price.

Joey Seow, general manager Hong Kong of Singapore Airlines, said: 'Low fares are not the prime consideration anymore. When people shop for air tickets, other considerations are taken into account, such as inflight service, entertainment systems, new aircraft, comfort and reliability.

'Singapore Airlines always strives to provide customers with the best travel experience and we achieve this by going beyond their expectations with continuous innovations,' he said. One such innovation was the introduction of the super-jumbo Airbus A380. Singapore Airlines was the first to incorporate the new plane into its fleet, and its huge size has enabled the airline to claim new levels of comfort, especially in the lucrative business and first-class sections.

Other recent innovations include new business class seats, and the first trans-Pacific all business class flight from Singapore to New York, improved in-flight entertainment and an improved website making bookings easier.

The airline recently finished its second round of cabin crew recruitment in Hong Kong this year. Cadet pilots and management trainees are also often recruited in Hong Kong, with vacancies arising throughout the year.

'There is no fixed recruitment schedule at the moment, but with our fleet requirements growing, it is likely we will be hiring for these positions in the next year or so,' Mr Seow said.