Capacity growth accelerates for Cathay Pacific, but challenges loom
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.
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