Cathay Pacific reduces fuel surcharges again

14.5% reduction in fuel surcharges

From 1st July 2026, Cathay Pacific is decreasing its fuel surcharge by HK$198 per sector, following a noticeable easing in jet fuel costs.

For a typical return journey from the UK to Australia or New Zealand via Hong Kong, this means a saving of around £80 per person. Combined with the reduction already introduced in May, travellers will be able to find fares that are around £160 cheaper per return ticket than there were a few months ago.

This comes after a recent noticeable easing in jet fuel costs. For anyone keeping an eye on long-haul flight prices, it is another positive sign that the market is beginning to settle.

Fuel surcharges are only one part of the overall ticket price, but they do make a difference. When this part of the fare comes down, it helps reduce the cost of a long-haul journey, and shows that the market is beginning to settle after a more unsettled period for airfares.

A Cathay Pacific Airbus at the airport with a sunset in the background.

What do airfares look like right now?

This is not the only positive development we are seeing. Across the airlines we partner with, including carriers travelling via Singapore, Hong Kong, and other Asian stopover points, fares and availability are looking more attractive than they did even just a few weeks ago.

We are seeing more economy and premium economy offers come across our desks, with some fares now sitting closer to where they were before the recent disruption in the Middle East.

For anyone dreaming of a holiday Down Under, this is certainly welcome news.

In this update video, our founder Andrew Morten explains what we are currently seeing with airlines and airfares in June 2026, including why prices rose in the first place, what has changed in the fuel market, and why travellers can feel more confident about planning again.

“Airfares are coming right down again. We’re seeing airlines offer specials and quite attractive fares to get bookings moving. Every time we calculate a new fare for someone, prices are coming in substantially cheaper than they were less than a month ago.”
— Andrew Morten, CEO and Founder of TravelEssence

What does this mean for travellers?

If you looked at Australia or New Zealand flights a couple of years ago and were put off by the post-Covid prices, today’s fares may come as a pleasant surprise.

Long-haul airfares are still a significant part of any holiday Down Under, of course. But compared with the very high prices seen in the first years after the pandemic, the current market is looking much more balanced.

For a couple or family planning a tailor-made holiday to Australia or New Zealand, that difference is important. It may free up budget for a few extra nights, a special experience, or a stopover in a cosmopolitan city like Hong Kong.

Why did flight prices rise earlier this year?

Over the past few months, many travellers have understandably had questions about flight prices. Long-haul fares were affected by rising oil prices, increased jet fuel refining costs, and wider uncertainty linked to the situation in the Middle East.

At one point, the aviation fuel airlines were paying for had risen sharply. Airlines were paying around USD 1,950 for a tonne of aviation fuel, whereas the figure is now closer to USD 1,120. That difference has a direct impact on the cost of operating long-haul flights, and, in turn, the prices travellers see.

While fuel prices have not returned completely to where they were before the disruption, they have come down significantly from their recent peak. That is why we are now seeing a more encouraging picture: lower fuel components, more airline offers, and better-value fares coming back into the market.

Is now a good time to book?

We would not suggest booking in a rush, a tailor-made holiday to Australia or New Zealand deserves a little more care than that. But based on what we are seeing, this is a very good moment to revisit your plans.

Fares and availability are looking more attractive again, and the market feels closer to where it was before the recent Middle East-related disruption.

Planning early still gives you the best choice. It gives you more flexibility with your route, a better chance of securing the places you really want to stay, and time to shape a holiday that feels right for you.

Whether you're dreaming of Australia, New Zealand, or a combination of both, our specialists can help you understand the best routes, stopover options, travel dates, and current fare options.