Hong Kong Transport and Logistics Bureau: urge airlines to provide reasonable notice period when adjusting fuel surcharges.

On April 22, the Secretary for Transport and Logistics of Hong Kong, Ms. Chen Mei Bao, responded to questions from legislators during a Legislative Council meeting, stating that the Transport and Logistics Bureau of Hong Kong has been maintaining close communication with local airlines to understand the industry's situation. She emphasized the importance of maintaining the competitiveness of Hong Kong International Airport and reminded local airlines of the key role and social responsibility they play in this regard. The Hong Kong government will continue to closely monitor the services provided by local airlines, urging them to provide reasonable notice when adjusting fuel surcharges to minimize inconvenience to passengers and the tourism industry. The Transport and Logistics Bureau will also maintain close communication with the tourism industry and increase information transparency through the online platform of the Hong Kong Tourism Industry Council (Passenger Fuel Surcharge List), allowing citizens to have a clearer understanding of the details of fuel surcharge adjustments and increasing market competition. The Hong Kong government has been gradually opening up the policy on airfare regulation. The fuel surcharge is intended to allow airlines to recover some of the increased operating costs when fuel prices fluctuate. International regulations on fuel surcharges have gradually been relaxed. The deregulation of fuel surcharges aims to let market forces adjust the level of fuel surcharges on their own, just as the market determines other components of airline service prices. Under the drive of market competition, airlines will have greater incentives to improve their overall service efficiency and quality, while market forces will ensure that air service prices (including fuel surcharges) are set at competitive levels. The Hong Kong government deregulated passenger fuel surcharges in November 2018 and will deregulate cargo fuel surcharges from January 1, 2025. After deregulating fuel surcharges, airlines can decide whether to impose fuel surcharges and the level of such charges for flights departing from Hong Kong. In terms of passenger fuel surcharges, airlines must display the final ticket price at the point of sale or when trading tickets directly, and itemize all the elements of the final ticket price that must be paid, including passenger fuel surcharges (if applicable). The main aviation fuel price index in the Asia-Pacific region has risen by more than double in the past few weeks. Fuel costs can account for more than 30% of an airline's operating costs. Airlines may appropriately raise ticket prices or increase fuel surcharges to continue to provide reliable air services, which is crucial for maintaining Hong Kong's status as an international aviation hub. Even in jurisdictions where fuel surcharges are still regulated, local fuel surcharges are also being raised in response to the soaring aviation fuel prices.