Cathay Pacific Airways is choosing to sustain flight capacity for now despite concerns over surging jet fuel costs tied to the conflict in the Middle East, Chief Executive Ronald Lam said on Monday. Speaking at an event in Seattle to mark the launch of the carrier's new Seattle-Hong Kong route, Lam described preserving service levels as the airline's short-term priority and said any reduction in flying would be treated as a "last resort".
Lam told reporters that since the U.S.-Israeli conflict with Iran began last month and traffic through the Middle East has dropped significantly, the airline has observed a pickup in demand on its long-haul services to North America, Europe and Australia. "We do see some slight surge in demand on certain routes," he said, while also highlighting mounting concern over jet fuel prices.
The CEO cautioned that passenger and cargo volumes would not remain in a "sustainable situation" if jet fuel remained at roughly double pre-conflict levels for an extended period. To address the immediate cost pressure, Cathay Pacific has implemented substantial fuel surcharges. Unlike several other carriers, however, the airline has so far refrained from cutting capacity; the article notes that other carriers including United Airlines, SAS and Air New Zealand have taken capacity reductions.
Lam's comments underline the trade-offs airlines face as they weigh short-term demand patterns against sharply higher fuel bills. Maintaining capacity responds to the observed demand uplift on some long-haul routes, while surcharges aim to offset elevated operating costs. Yet the CEO flagged that prolonged elevated fuel prices could force a reassessment of what is sustainable for both passenger and freight operations.
Event context: Lam made the remarks during a Seattle gathering celebrating Cathay Pacific's new Seattle-Hong Kong service.
Operational stance: Preserve capacity where possible; deploy fuel surcharges to manage cost pressures; view cuts as a fallback option only.