Cathay Pacific has faced difficulties in resuming its full prepandemic U.S. network due to Boeing’s delivery delays, particularly with the Boeing 777-9 aircraft. The airline had planned to receive 22 of these planes between 2021 and the end of this year. However, certification issues have led to delays, pushing back the delivery timeline to next year at the earliest. This has significantly impacted Cathay’s ability to increase its U.S. service, as it struggles to acquire the necessary aircraft to meet demand.
Network Discrepancies
Unlike some other full-service Asian carriers, Cathay Pacific has not been able to fully restore its U.S. network to prepandemic levels. The airline is currently flying 40.4% fewer seats to and from the U.S. compared to May 2019. This is in contrast to carriers like Korean Air, All Nippon Airways (ANA), Singapore Airlines, and Japan Airlines, which are operating at least 87% of their prepandemic U.S. seat count this month. The discrepancy in capacity reflects the challenges Cathay faces in overcoming the constraints posed by Boeing’s delivery delays.
To compensate for its limited U.S. service, Cathay is prioritizing the rebuilding of its regional network. By strengthening its connections within Asia, the airline aims to generate one-stop demand for flights to North America and Europe via Hong Kong. This strategy, according to Joshua Ng of Alton Aviation Consultancy, allows Cathay to increase flying and profitability while working towards fully recovering its pre-Covid operations. Despite facing reduced demand from mainland China, Cathay’s regional focus has proven successful in returning the Cathay Group to profitability in 2023.
In addition to Boeing’s delivery delays, Cathay has also been constrained by labor shortages in Hong Kong, including a pilot shortage. These challenges have further hindered the airline’s networkwide growth and expansion plans. However, Cathay has managed to increase frequencies on existing routes, such as the JFK-Hong Kong route, which now operates three times daily compared to twice daily a year ago. The reintroduction of a Boeing 777-300ER aircraft on the JFK route also signals Cathay’s commitment to enhancing its services in key markets.
Looking ahead, Cathay Pacific remains optimistic about its recovery prospects. The airline expects to achieve 80% capacity recovery this quarter and aims to return to its 2019 flying level by the first quarter of next year. Despite the challenges posed by Boeing’s delivery delays and labor shortages, Cathay is committed to rebuilding its U.S. network and regaining its position as a leading international airline. By focusing on regional growth and operational efficiency, Cathay Pacific hopes to overcome current obstacles and emerge stronger in the post-pandemic travel landscape.
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