Cathay Pacific CEO Addresses Impact of Middle East Conflict on Fuel Prices

Cathay Pacific CEO Ronald Lam has highlighted the challenges posed by rising aviation fuel prices due to ongoing conflicts in the Middle East. According to RTHK, Lam emphasized that the group's immediate priority is to maintain flight capacity, with any reduction in flights being considered a last resort. In an interview with Reuters, Lam noted a significant decrease in passenger traffic from the Middle East since the outbreak of the conflict involving the U.S., Israel, and Iran. Conversely, there has been an increase in demand for long-haul flights to North America, Europe, and Australia. Lam expressed concern over the cost of aviation fuel, stating that if prices remain at double the pre-conflict levels for an extended period, it will be challenging to sustain passenger and cargo demand.