Cathay warns of post-summer flight cuts if oil prices stay high

Cathay Pacific has warned that it may implement further flight reductions beyond the summer period if high oil prices persist. The airline previously announced cuts to its flight schedule from mid-May through June 2026, citing elevated jet fuel costs driven by the conflict in the Middle East. Cathay Pacific and its budget subsidiary, HK Express, reduced approximately 2% and 6% of their scheduled flights, respectively, during that period. The airline also suspended services to Dubai and Riyadh until June 30.

Despite these temporary measures, Cathay Pacific has maintained its broader growth strategy, with CEO Ronald Lam stating the airline expand passenger capacity by 10% in 2026. However, industry executives have indicated that fuel supply constraints remain for months, even if shipping routes such as the Strait of Hormuz reopen. As a result, Cathay Pacific has signaled that it may need to reassess its operations if fuel prices remain elevated, potentially leading to additional flight cuts in the future.