Hong Kong lost ‘awful lot of ground’ to aviation hub rivals, rebuilding will be challenge, global industry body says
Hong Kong lost ‘awful lot of ground’ to aviation hub rivals, rebuilding will be challenge, global industry body says
Cathay Pacific expected to operate at only 60 per cent of pre-pandemic capacity by end of year, says International Air Transport Association chief Willie Walsh
But outlook for industry positive overall, association says, doubling its previous estimate for profit in 2023 to US$9.8 billion
Hong Kong faces a “difficult and challenging” task in rebuilding its role as an aviation hub, while the city’s flag carrier Cathay Pacific Airways is expected to operate at only 60 per cent of its pre-pandemic capacity by the end of the year, the head of a global airline association has said.
But the outlook for the industry as a whole was positive, director general of the International Air Transport Association (IATA) Willie Walsh told its annual meeting in Istanbul on Monday, predicting global profits would reach US$9.8 billion this year, double its forecast in December, on the back of stronger demand for travel.
Walsh told the Post last December he did not expect Hong Kong would fully regain its status as an aviation hub before 2028, pointing to “structural changes” in the city following three years of Covid-19 travel restrictions.
Asked again about his earlier comments, Walsh admitted his timeline was based on a “feeling” about where Hong Kong was in the recovery process compared with rivals.
“It is rebuilding, but I think it has lost an awful lot of ground and that lost ground is going to take time to recover,” he said, adding it was going to be a “very difficult and challenging task”.
Cathay faced a complex process in rebuilding its international network, Walsh argued.
“I think Cathay will be operating at 60 per cent capacity this year as they retrain pilots, many of whom have not flown in the past two years,” he said.
Cathay and its budget arm HK Express have set a target of reaching 70 per cent of pre-pandemic passenger flight capacity by the end of the year and 100 per cent at the end of 2024.
Cathay Pacific faces a complex process in rebuilding its international network, IATA chief Willie Walsh says. Photo: Yik Yeung-man
Cathay Pacific faces a complex process in rebuilding its international network, IATA chief Willie Walsh says. Photo: Yik Yeung-man
Hong Kong faces a “difficult and challenging” task in rebuilding its role as an aviation hub, while the city’s flag carrier Cathay Pacific Airways is expected to operate at only 60 per cent of its pre-pandemic capacity by the end of the year, the head of a global airline association has said.
But the outlook for the industry as a whole was positive, director general of the International Air Transport Association (IATA) Willie Walsh told its annual meeting in Istanbul on Monday, predicting global profits would reach US$9.8 billion this year, double its forecast in December, on the back of stronger demand for travel.
Walsh told the Post last December he did not expect Hong Kong would fully regain its status as an aviation hub before 2028, pointing to “structural changes” in the city following three years of Covid-19 travel restrictions.
Asked again about his earlier comments, Walsh admitted his timeline was based on a “feeling” about where Hong Kong was in the recovery process compared with rivals.
“It is rebuilding, but I think it has lost an awful lot of ground and that lost ground is going to take time to recover,” he said, adding it was going to be a “very difficult and challenging task”.
Cathay faced a complex process in rebuilding its international network, Walsh argued.
“I think Cathay will be operating at 60 per cent capacity this year as they retrain pilots, many of whom have not flown in the past two years,” he said.
Cathay and its budget arm HK Express have set a target of reaching 70 per cent of pre-pandemic passenger flight capacity by the end of the year and 100 per cent at the end of 2024.
Flights at Cathay budget carrier HK Express ‘back to pre-Covid levels by Friday’
30 Mar 2023
Hong Kong lifted Covid-19 restrictions on international arrivals last December and resumed quarantine-free travel with mainland China in February.
Independent aviation analyst Brendan Sobie said Hong Kong was a year behind other places, such as Singapore, in restoring its aviation industry to 2019 levels.
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