The Civil Aviation Department (CAD) has approved for the seventh consecutive time the increase of passenger fuel surcharges by nine airlines. The new surcharges will be effective from August 1 to September 30.

  Cathay Pacific, Dragonair, Singapore Airlines and Xiamen Airlines will increase fuel surcharges for short-haul flights by 35 percent from HK$171 to HK$231.

  The airlines, except for Xiamen Airlines, will increase fuel surcharges for long-haul flights by 30 percent from HK$710 to HK$924.

  The highest increase was granted to Saudi Arabian Airlines which will revise up its surcharge from HK$118 to HK$470.

  Meanwhile, Nepal Airlines will increase the surcharge from HK$240 to HK$540.

  Other airlines approved include Aeroflot Russian Airlines and All Nippon Airways, which will increase the surcharges from HK$620 to HK$753 and from HK$125 to HK$171 respectively.

  A department source said some airlines had applied for surcharges higher than the approved rate.

  The price of jet fuel reached a record high of US$181.85 on July 3 in Singapore, but went down in recent days.

  The source added that if oil price continues to go down, the surcharge will be adjusted downward in the next review in September.

  The source also said they had considered passengers' affordability when processing the airlines' applications, adding that surcharges in the city are only 50.4 percent and 63.4 percent of international levels for short-haul and long-haul flights respectively.

  The department estimated that most airlines will only recoup about 40 to 70 percent of the additional cost incurred by the oil price hike with the surcharges.

  A department spokesman said in a press release that airlines have taken other cost-cutting measures to offset the rising fuel costs, including cutting down on service frequency.

  "We have received notification from a few airlines that they will reduce the number of flights to the Pacific, Southeast Asia and the mainland," the source said.

  Cathay Pacific, which issued its second-ever profit warning earlier this month over increasing oil prices, said they estimate that the new surcharge will cover less than half of the increased fuel cost.

  The airline, which said fuel cost has climbed from 39 percent of its net operating cost to 50 percent, has raised the surcharges by 37 percent since June 1, which is the biggest increase since 2004.

  The Hong Kong Tourism Board expressed concern that this could lead to a drop in the numebr of visitors.

  Meanwhile, Hong Thai Travel Services general manager Susanna Lau said she is confident that the adjustments will not deter Hongkongers from traveling overseas.

  "The increase is within their expectations. It is not a surprise to them," she said.