Cathay Pacific Plans To Double Network By Year’s End

Following Hong Kong’s ongoing relaxation of travel restrictions, Cathay Pacific is slowly re-establishing its network.

The airline began 2022 with flights to 29 destinations, but by the end of the year, it hopes to have doubled that number to 45.

As a result of Hong Kong’s strict travel regulations, Cathay Pacific’s traffic has dropped dramatically in the last two years, and the latest estimates show that passenger counts are still down 98% from pre-pandemic levels as of May 2022.

Incoming demand for flights to Hong Kong has seen “significant growth, driven by pent-up demand out of North America, the UK, and Europe,” according to Ronald Lam, chief customer and commercial officer.

However, only limited frequencies into China’s mainland are still operated “to comply with existing capacity constraints” whilst flights to Delhi and Mumbai have resumed.

Lam noted that the first quarter of 2022 saw travel restrictions and quarantine procedures tightening as Hong Kong continued its fight against Covid-19.

As a result, we can only provide a fraction of the passenger services we used to, and our cargo capacity has been drastically decreased.

Although limitations on travel and quarantine procedures have recently been eased, we have been allowed to resume greater flight capacity in the second quarter.”

In the first half of 2022, our consolidated losses, albeit significant, are forecast to be smaller than the consolidated losses reported in the first half of 2021,” according to the company’s statement.

Recently, Hong Kong’s government approved an extension of Cathay’s HK$7.8 billion loan drawdown period until June 2023. Lam said the extension was “greatly appreciated” and would give the airline more leeway in managing its cash flow.

Flight capacity is expected to expand in June and beyond as travel demand continues to rise over the next few months, as long as limitations remain in place. ”

Our goal is to increase Cathay Pacific’s current 29 destination network to at least 50 by the end of the year. With 45 destinations restarted in June, we are already halfway to our goal. Our airline will monitor the opening of travel activities in neighbouring countries like Japan and South Korea to see if there is enough demand for flights. ”

Transit traffic between the UK, Australia, and New Zealand, as well as North America and Southeast Asia, is expected to improve.