Dear Sir/Madam,

Attached please see CX/KA circular to all appointed cargo agents dated 18th July 2008 (Our Ref : CSA/CIR-07/003) regarding the increase of cargo fuel surcharge effective from 1st August 2008. Summary of the new cargo fuel surcharge as follows :

Area 1 North & South America HK$10.8/kg

Area 2 Europe, Middle East & Africa HK$10.8/kg

Area 3 South & Southwest Pacific HK$10.8/kg

Area 3 Asia (other than South & Southwest Pacific) HK$5.4/kg

Please note 1st August 2008 (Friday) will be the effective date of above new surcharge applied to both Cathay Pacific and Dragonair flights.