HONG KONG - CATHAY Pacific is to reduce its free baggage allowance for economy class passengers to North America, the Hong Kong carrier said on Thursday, as oil prices reached a new high.

The maximum weight per bag will be reduced from 32 kilograms to 23 kilograms, it said in a statement. Passengers can check in up to two bags.

A spokeswoman said oil prices were 'not a primary factor' in the decision, which came just a day after the airline warned profits would be hit by the soaring cost of fuel.

The cost of a barrel of crude oil topped US$146 on Thursday, and airlines worldwide have been struggling to come up with measures to reduce the weight of their flights in order to cope with the record-high prices.

Cathay said economy class passengers would be charged a flat rate of US$25 for each bag above 23 kilograms and below 32 kilograms, but there would be no change for passengers travelling in business and first class. -- AFP