Vast mainland market helps boost HK aviation performance, industry confidence
Two sections of the Guangzhou Nansha Honglian Bridge are joined in Guangzhou, South China's Guangdong Province, on July 25, 2022. The 1,782-meter bridge is located in the Nansha area of the China (Guangdong) Pilot Free Trade Zone. It will be an important passage for the logistics and distribution networks of the Guangdong-Hong Kong-Macao Greater Bay Area. Photo: VCG
After emerging from heavy indebtedness in the previous years of the Covid-19 pandemic, Hong-Kong based Cathay Group is returning to the list of the world's top airlines, announcing that it will upgrade its operations through large-scale investments in multiple fields in order to help the Hong Kong aviation hub "return to its place".The air carrier highlighted the importance of the Chinese mainland market, and vowed that it will continue to build Hong Kong into an international aviation hub that connects people to the world's most attractive destinations, which experts said that Chinese mainland's aviation market has played an important role behind Cathay's improving performance.
"Our recruitment and training to fuel this growth is on track. Our group headcount will increase by 5,000 people this year to a total of 29,000," according to Cathay Group CEO Ronald Lam, briefing company interim fiscal results on August 7.
In an earlier interview with the Global Times, Lam said that through efforts such as recruiting more flight attendants from the mainland and expanding mandarin language services, the carrier will improve service levels and unlock development opportunities created by huge demand across the mainland market.
Since Cathay Group first recruited flight attendants in the Chinese mainland last year, more than 300 mainland flight attendants have started work, with this number set to increase to 500 by the end of this year. It is expected that more than 1,000 mainland flight attendants will provide services on Cathay Group flights next year, said Lam.
As Hong Kong's largest airline, Cathay Pacific is rebuilding its route network during the industry recovery process and is committed to reconnecting the Chinese mainland and Hong Kong with the world.
Over the past year, Cathay Pacific has made a number of adjustments in terms of in-flight services and airport services in response to the needs of mainland passengers. Currently, Cathay Group's flights from Hong Kong to and from the mainland have resumed to about 226 pairs per week, reaching 17 cities.
The Cathay Group reported a profit of HK$3,613 million in the first half of 2024, compared with profit of HK$4,268 million in the same period of last year.
Cathay Pacific lounge Photo: Courtesy of Cathay Pacific
The interim results report shows that Cathay Group's revenue reached HK$49.604 billion in the first half of 2024, a year-on-year increase of 13.8 percent. Among them, air passenger revenue reached HK$30.017 billion, an increase of 20 percent over the same period last year.
The number of passenger flights of the group is forecast to return to 100 percent of the pre-pandemic level in the first quarter of 2025, according to Cathay Group Chair Patrick Healy.
"Our passenger flights reached 80 percent of pre-pandemic levels as a Group within the second quarter as planned. As more passenger flights have been added to the market, we have seen yields begin to normalize as expected," he added.
The improving results came amid the background of Hong Kong actively strengthening cooperation with the Chinese mainland.
Recent measures introduced by the central government to bolster Hong Kong's financial, cultural, and tourism sectors are expected to provide new opportunities for Hong Kong's development and further drive economic growth, Kevin Yeung, Hong Kong Secretary for Culture, Sports and Tourism of the Hong Kong Special Administrative Region government, told the Global Times in a recent exclusive interview.
According to the announced plan, Cathay Group has pledged to invest more than HK$100 billion in the next seven years to upgrade its fleet, cabin products, airport lounges, digitalization and sustainable development.
These continued investments will complement the Hong Kong Airport's Three-Runway System, consolidate Hong Kong's position as an international aviation hub, and reflect our firm commitment to promoting the sustainable development of Hong Kong's economy," Healy said.
In addition, as part of this momentous investment program, the group announced the purchase of 30 Airbus A330-900 aircraft, with the right to acquire an additional 30 aircraft in the future.
These new regional widebody aircraft are expected to be delivered from 2028 and will join the Cathay Pacific fleet principally serving destinations in Asia, according to Lam.
正在加载中
