Cathay Pacific, a major airline based in Hong Kong, has faced challenges in expanding its U.S. service due to Boeing’s delivery delays. The airline has nearly doubled its service to the U.S. since Hong Kong lifted Covid-19 travel restrictions in April 2023. However, the lack of timely delivery of Boeing 777-9 aircraft has hindered Cathay’s ability to fully restore its pre-pandemic U.S. network. This has led to operational constraints in terms of aircraft, airplane crews, and ground operations, affecting the airline’s capacity and growth plans.
Cathay Pacific is currently operating flights to Hong Kong from major U.S. cities such as New York JFK, Los Angeles, San Francisco, Boston, and Chicago. However, services from Seattle, Washington Dulles, and Newark have not yet been reinstated. As a result, the airline is flying 40.4% fewer seats to and from the U.S. compared to May 2019. In contrast, other Asian carriers like Korean Air, All Nippon Airways (ANA), Singapore Airlines, and Japan Airlines have managed to operate at least 87% of their pre-pandemic U.S. seat count, with some even exceeding the 2019 levels.
Long-Haul Growth Challenges
Cathay Pacific’s long-haul growth has been restrained by the delayed delivery of Boeing 777-9 aircraft, which were originally scheduled to be received between 2021 and the end of this year. However, with Boeing facing certification delays, the deliveries are now expected to commence only in the next year at the earliest. This has impacted Cathay’s expansion plans and forced the airline to recalibrate its North American recovery strategy to ensure operational reliability and network optimization.
Networkwide Recovery Strategy
Despite the challenges, Cathay Pacific aims to achieve an 80% capacity recovery this quarter and return to its 2019 flying level in the first quarter of the next year. The airline is focusing on rebuilding its regional network to generate demand for its North American and European routes via Hong Kong. By strategically expanding its regional operations, Cathay hopes to increase profitability and gradually restore its pre-pandemic flying environment.
Apart from delayed aircraft deliveries, Cathay Pacific is also grappling with labor shortages in Hong Kong, including a shortage of pilots. These operational constraints have limited the airline’s networkwide growth and its ability to capitalize on the recovering aviation market. Despite these challenges, Cathay remains committed to expanding its services in North America by increasing frequencies on existing routes and offering enhanced passenger experiences, such as reintroducing first-class seats on certain routes like JFK-Hong Kong.
Cathay Pacific’s expansion plans in the U.S. have been hampered by Boeing’s delivery delays and operational constraints. However, the airline is resilient and continues to work towards restoring its network, optimizing its operations, and positioning itself for long-term growth in the post-pandemic aviation market. By addressing the challenges at hand and implementing strategic recovery measures, Cathay Pacific aims to overcome the obstacles and emerge stronger in the competitive airline industry.