Middle East conflict sends Cathay Pacific fares from global cities to Hong Kong soaring

Hong Kong’s flag-carrier Cathay Pacific Airways is facing one of the sharpest price spikes in its history after the sudden closure of large swathes of Middle-East airspace triggered by the Iran-US-Israel war. An investigation by the South China Morning Post on 7 March 2026 found that the cheapest available tickets for the next departures into Hong Kong from 57 long-haul cities had risen by an average 93 per cent versus the upper range of normal fares over the past 12 months. Business-class seats on the airline’s signature London–Hong Kong service were selling at HK$53,486 (US$6,837) – 600 per cent above the typical HK$7,400 rate. Madrid, Chennai, Vancouver and Sydney were among other routes showing three- to five-fold mark-ups. The surge reflects a scramble for capacity that bypasses Dubai, Doha and Riyadh – regional hubs effectively cut off since the first US-Israeli strikes on Iran. Carriers have re-routed via Central Asia, added fuel stops, or suspended services altogether, leaving Cathay – one of the few airlines still operating direct links between Europe, Asia-Pacific and Hong Kong – with unprecedented demand.



If changing itineraries has left you scrambling for fresh transit or destination paperwork, VisaHQ can help. Its Hong Kong office offers rapid online processing for visas, passport renewals and travel documents, and the advisers can suggest compliant routings when airspace restrictions shift. Learn more at https://www.visahq.com/hong-kong/

Industry analysts say the airline’s yield (revenue per seat-kilometre) could jump 15-20 per cent in March, providing a short-term earnings windfall but risking reputational damage if price-gouging perceptions spread. For corporate travel managers the timing is painful. March is traditionally the start of Asia’s spring conference season and the resumption of expatriate rotation cycles after Lunar New Year. Firms with mobility policies pegged to average ticket prices could see cost overruns of HK$10,000-20,000 per trip for senior staff and may need to revisit travel approval thresholds or switch to virtual meetings. Relocation advisers are already warning assignees to build extra transit time into travel plans and to secure flexible tickets that allow re-routing through Bangkok, Seoul or Kuala Lumpur should additional airspace closures occur. Cathay Pacific told the Post it is “continuously monitoring the situation” and will add capacity where possible, but operational constraints – notably overflight rights above Kazakhstan and Turkmenistan – limit immediate relief. Hong Kong’s Transport and Logistics Bureau said it is liaising with mainland authorities to fast-track approvals for additional charters if the crisis drags on. In the meantime, employers are advised to keep travellers on the airline’s alert list and to ensure robust travel-risk insurance is in place.