Capacity growth accelerates for Cathay Pacific, but challenges loom

Premium Analysis

Due to the recent relaxation of COVID-19 restrictions, Cathay Pacific is achieving the strong capacity gains it was targeting – although the airline’s recovery phase could be complicated by competition and labour headaches.

The airline began ramping up its capacity rebound in 4Q2022 following the Hong Kong government’s decision to drop its remaining quarantine requirements.

Moves to restore cross-border traffic flows with mainland China in Dec-2022 provided further impetus.

Although Cathay Pacific had the most to gain from these reopening steps, other airlines will also increase services to Hong Kong. The airline's CEO has warned that competition could intensify in the longer term.

And labour action from flight attendants could signal that unions may want concessions as the airline gains strength.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,236 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.