Cathay Pacific targets recovery and growth: part one – demand drives capacity rebound

Cathay Pacific has been one of the most watched airlines in the Asia-Pacific region during the COVID pandemic period. Some industry observers speculated that its Hong Kong hub may have suffered long term competitive damage, as Hong Kong trailed most other markets in the region in terms of easing onerous operational and travel restrictions.

While it had a later start than most Asia-Pacific airlines, Cathay Pacific's post-pandemic capacity recovery is continuing to gain strength as demand surges in its key markets. This year, it has been achieving its capacity growth targets, which is increasing confidence in its timetable for full recovery.

There are still some bottlenecks that are constraining the airline's growth rate, although there is no question that demand is strong. Improvements in the vital mainland China market are helping in the short term, and Cathay Pacific still has underlying advantages that will reassert themselves as air travel normalises.

Part one of this update focuses on the demand and capacity rebound.