Hong Kong airfares tipped to rise as airlines regain right to add fuel surcharges to ticket prices
Civil Aviation Department deregulates fuel surcharges to keep ticket prices competitive but levies new requirements on airlines to display final price of airfares at all times
Hong Kong passengers can expect to pay more for airfares from November 1 following the government’s decision to allow airlines to add in fuel surcharges – but in exchange, carriers will need to be more transparent and state the final ticket cost upfront.
With the deregulation of fuel surcharges, long-haul fares are expected to increase by several hundred dollars with crude oil closing in on US$80 a barrel. The last time oil was around that price four years ago, airlines slapped an extra HK$623 (US$79.80) on long-haul ticket prices and HK$143 for regional trips.
Announcing the changes on Friday, the Civil Aviation Department (CAD) said: “Under the new display requirements, airlines will need to provide the final price of air tickets at all times and provide a breakdown of the final price to show all ‘must pay’ elements of the ticket fare in each quotation/transaction at their direct sales outlets.”
Airlines that wished to impose a fuel surcharge as part of the final price would need to clearly show the cost of that, along with other “must pay”elements, it added.
The CAD said it had consulted stakeholders and had received general support for the changes. The Consumer Council and the Competition Commission also supported the moves, it said.