Hong Kong’s Cathay Pacific says the performance of its Thailand routes is rebounding in the second half after being hampered by unsafe travel sentiment, with strong demand from transit passengers, particularly the long-haul market.
The airline is focusing on strengthening performance for existing routes in Thailand and Southeast Asia.
Lavinia Lau, chief customer and commercial officer for Cathay, said the group sees passenger demand on a healthy trajectory next year.
Ms Lau said the group focuses on a dual branding strategy, with Cathay Pacific and its low-cost carrier HK Express posting a 20% uptick in flight capacity this year.
Capacity on Cathay Pacific’s core routes in Southeast Asia has already returned to 2019 levels. For instance, it is now operating up to eight flights a day between Hong Kong and Bangkok, and eight flights a day between Hong Kong and Singapore.
Meanwhile, HK Express has been a growth engine for the group, and it recently launched flights to two Malaysian cities — Kuala Lumpur and Kota Kinabalu, she said.
Concerning Thailand, Ms Lau said the country has not been the best performing so far, as it had faced several challenges in the first half of this year, such as a Chinese actor kidnapped into a scam centre in Myanmar, the March 28 earthquake that rocked Bangkok and political instability. This significantly hampered markets such as Hong Kong and China more than others.
However, Thailand has started to see some recovery since the start of the second half.
She said Cathay Pacific is still seeing strong demand to Thailand from long-haul routes, such as Dallas in the US, which it launched earlier this year, attributed to season 3 of HBO’s White Lotus. The series was shot in Thailand.
Despite rising competition from mainland carriers, which have increased flights to Southeast Asia banking on a variety of visa-free programmes, Ms Lau said Cathay Pacific could still compete with them for Chinese travellers visiting the region via transit in Hong Kong.
She said the group does not have a plan yet to open new routes for Thailand, but will maintain its frequency and instead focus on boosting load factors and performance.
Cathay Pacific operates flights to Bangkok and Phuket, while HK Express flies from Hong Kong to Bangkok, Phuket and Chiang Mai.
When it comes to Southeast Asia, the airline is strengthening routes by adding flights to existing routes serving Ho Chi Minh City and Hanoi.
Enhancing value for passengers, the airline has launched the new “Aria Suite” business class on 10 of its 12 existing 777-300ER aircraft this year, with the aim of completely launching the Aria Suite to cover all 12 aircraft by the end of this year.
These planes were mainly used for long-haul routes, but are sometimes utilised for the Bangkok-Hong Kong route.
During the second half, the airline will also retrofit its business class on regional A330 aircraft from recliner seats to modern lie-flat beds.
Cathay Pacific is awaiting delivery of 35 new 777-9 jets, which offer four cabin types, including an all-new first class.
Despite Boeing’s announcement of a delivery delay for the first batch of 777-9 aircraft to 2027 from 2026, which affects the fleet planning of many global airlines, Ms Lau said Cathay Pacific still hopes to receive its first aircraft in 2027.
The airline is maintaining flexibility in its fleet planning, such as extending the operating age of existing owned and leased aircraft.
She said the cargo business remains an important segment for the group in Southeast Asia. While the cargo sector is facing challenges this year from tariffs and the trade war, some manufacturers are finding alternatives to China, and opting for Southeast Asia instead.
This sector is recording demand for products such as electronics, fruit, vegetables and pharmaceuticals for shipment out of the region.