Cathay aims to add 10 new destinations

Cathay Pacific Airways (0293) said it hopes to increase its number of destinations to 90 within the next nine months and reiterated its target to return to full pre-pandemic capacity no later than the first quarter of next year.

Speaking at a summit in the city, chief executive Ronald Lam Siu-po said that the flagship carrier currently covers around 80 destinations and will continue to rebuild, with a plan to add destinations in the mainland and Belt and Road countries.

Lam said the number of passenger flights has returned to 80 percent of pre-pandemic levels, adding that he expects to reach full capacity between the end of this year and the first quarter of 2025.

In revealing 2023’s financial results last month, Cathay pushed back its goal for restoring pre-Covid capacity to early next year, three months later than initially planned.

Lam said that flights between the mainland and international destinations have been recovering at a slower pace, reaching only about 60 percent of pre-pandemic levels currently.

It is expected to reach 80 percent by the end of 2024.

The slower recovery was believed to be related to geopolitical tensions. However, Lam said that the recent relaxation of visa arrangements by mainland authorities and ability to bundle credit cards with the two major mainland payment tools were conducive factors.

He believes that the mainland’s high-speed rail will synergize with air transportation in the long run, allowing travelers to visit to Hong Kong by rail from the mainland and then transfer to international flights, strengthening Hong Kong’s position as an international aviation hub.

Lam said Cathay’s strong performance last year was thanks to pent-up demand for travel, with the three years of Covid-19 pandemic disruptions considered a favorable yet one-off circumstance.

Speaking on sustainable development, Lam said that before the pandemic, the average passenger used seven to eight disposable plastic items, which has now been reduced to two to three items. He hopes to further reduce it to 1.5 items next year. Lam added Cathay is also committed to developing the use of sustainable aviation fuel.

Cathay swung to a net profit of HK$9.79 billion last year and resumed a dividend distribution of HK$0.43 per share, its first annual net profit and dividend payout to regular shareholders since 2019. In comparison, the company lost HK$6.62 billion in 2022.