Cargo fuel surcharge to be liberalised

May 23, 2024

The Government today announced that the implementation of cargo fuel surcharge (CFS) liberalisation will take effect starting January 1, 2025, after a lead-in period of six months.


Noting that the prevailing requirement on airlines to impose CFS may inhibit market competition, the Government said that with the liberalisation of CFS, airlines may set their own surcharge levels or choose not to levy such surcharges for flights originating from Hong Kong.


It added that such liberalisation aligns with the global trend of deregulating fuel surcharges and encourages competition in the air cargo industry, thereby maintaining the competitiveness of Hong Kong's aviation industry and its status as an international aviation hub.


A communication platform will be put in place to work in collaboration with stakeholders for the smooth transition towards the liberalisation of CFS from January 1, 2025.


The Government explained that in an effort to provide the air cargo industry sufficient time to prepare for the liberalisation, there will be a six-month lead-in period, from July 1 to December 31, 2024.


To ensure transparency after the surcharge is liberalised, the Civil Aviation Department will require airlines to promulgate their maximum surcharge levels for flights originating from Hong Kong on company websites or other platforms for the public’s information.

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