The Challenges Faced by Cathay Pacific in Rebuilding U.S. Service Post-Covid

The resumption of international travel post-Covid has not been without its challenges, particularly for Cathay Pacific, which has nearly doubled its U.S. service since April 2023. However, the airline has faced setbacks due to Boeing’s delivery delays, preventing it from fully reinstating its pre-pandemic U.S. network. Cathay’s head of sales operations, Sarah Kraemer, highlighted the industry-wide constraints with aircraft, airplane crews, and ground operations, making it difficult to meet the growing demand from North America.

While Cathay Pacific has resumed flights to major U.S. cities like New York JFK, Los Angeles, and San Francisco, it has yet to reintroduce services from Seattle, Washington Dulles, and Newark. The airline is currently operating 40.4% fewer seats to and from the U.S. compared to May 2019, reflecting the continued impact of the pandemic on global travel. Unlike some of its Asian counterparts, Cathay’s long-haul growth has been affected by the delay in Boeing 777-9 aircraft deliveries, further complicating its route expansion plans.

As Cathay Pacific works towards achieving 80% capacity recovery this quarter and returning to its pre-pandemic flying levels by early next year, the airline is focusing on rebuilding its regional network to support its North American and European connections via Hong Kong. This strategy, spearheaded by Alton Aviation Consultancy’s Joshua Ng, aims to maximize profitability while navigating through operational hurdles like pilot shortages and labor constraints in Hong Kong. Despite facing challenges in the mainland China market, the Cathay Group remains optimistic about its growth prospects in the coming years.

In the past year, Cathay Pacific has concentrated on increasing frequencies on existing routes rather than launching new destinations in the U.S. market. For instance, the airline has ramped up its JFK-Hong Kong services from twice-daily to three-times daily, showcasing its commitment to meeting growing passenger demand. By reintroducing a Boeing 777-300ER aircraft on its JFK route, Cathay has been able to offer first-class seats in the competitive New York market, signaling its determination to enhance customer experience and drive revenue growth.

Despite the setbacks faced by Cathay Pacific in rebuilding its U.S. service post-Covid, the airline remains focused on long-term growth and network expansion. By aligning its North American recovery with its broader network strategy, Cathay aims to capitalize on emerging travel trends and passenger preferences in a post-pandemic world. As the aviation industry continues to navigate through uncertainty, Cathay Pacific is poised to emerge stronger and more resilient, ready to capture new opportunities and solidify its position as a leading global carrier.

Airlines

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