Cathay Pacific airplanes are parked on at the Hong Kong International Airport in Chek Lap Kok on September 20 last year. Cathay is still Hong Kong’s flagship carrier and an integral part of making the city not just an aviation hub but also a world-class city. Photo: Sam Tsang
Opinion
Alice Wu
Alice Wu
Cathay Pacific needs Hongkongers’ support as it finds its feet again
After years of posting pandemic-related losses, Cathay Pacific reporting a net profit of HK$9.79 billion in 2023 is a welcome bit of good news for the city
If our flag carrier is to recover its status as the pride of Hong Kong, the city’s people need to give it their support and celebrate a good Hong Kong story
Good news can be hard to come by nowadays, so Cathay Pacific deserves a big pat on the back for delivering some last week by reporting its first profit in four years and its highest since 2010. Hong Kong’s flag carrier being in better health can be a sign of hope for better days to come.
Cathay’s exit from the dark clouds of the Covid-19 pandemic has not been without problems, of course, but it has succeeded. We as a city are a few steps closer to re-establishing ourselves as an international aviation hub.
Having posted years of losses, the airline recovered from a net loss of HK$6.5 billion (US$831 million) in 2022 to a net profit of HK$9.79 billion in 2023. That is no small feat.
It had help from the government in the form of a HK$27.3 billion lifeline during the worst days of grounding planes during the pandemic. But consider that the airline has paid the government dividends and repurchased half of the preference shares – worth HK$19.5 billion – issued to the government as part of its recapitalisation financing in 2020.
The airline faced strong headwinds when Hong Kong finally lifted Covid-19 travel restrictions. Considering it was a latecomer in recovering from Covid-19 while competitors had a head start, Cathay Pacific’s achievement in such a short period of time is remarkable – in spite of the missteps made along the way.
While many might not be ready to say Cathay Pacific has regained its standing as the pride of Hong Kong, it is still the city’s flag carrier. It is an integral part of making the city not only an aviation hub but also a world-class city. As the first and last face of Hong Kong new visitors will see when flying the city’s airline, we do expect it to upgrade its quality of service.
Flight information is displayed on a monitor at the Hong Kong international airport on January 11. A wave of flight cancellations by Cathay Pacific early this year has negatively affected customer confidence and its brand reputation. Photo: Dickson Lee
The airline has received an earful or two about that issue in the past few months. But as it plots its progress on its post-pandemic recovery, we expect Cathay to find its way back to the top and reclaim its leading position in the Greater Bay Area and beyond. There is no question it is a leading presence in the region, but it needs the Hong Kong people’s support to re-establish itself as a top airline in the world.
Many of the challenges Cathay faces are, much like the travel restrictions during the pandemic, out of its control. The airline still retains its fighting spirit, though, and its recent good news is a strong indicator of that. Competition should be welcomed and will make it stronger and better.
The geopolitical complexities that spill over into the aviation sector could pose challenges which require the government to step in to help, for the sake of cementing Hong Kong’s status as an international aviation hub. It will take more than just a flagship airline to make that happen. The third runway at Hong Kong International Airport and the necessary facilities and services are also part of the equation.
Philip Chen Nan-lok, the first local Hong Kong Chinese chief executive and later deputy chairman of Cathay Pacific, recently wrote about what needs to be done to make Hong Kong an aviation hub. One of the points he made was the need to strengthen our network, not only in bringing travellers into Hong Kong but also those who are transiting through Hong Kong. As a widely proclaimed “superconnector”, Hong Kong must make this a priority.
A construction site of the third runway at Hong Kong International Airport in Chek Lap Kok is seen on June 19 last year. Photo: Jelly Tse
There is something else we must take to heart. Cathay posting a profit has taken this city out of just talking about the recovery to actually showing results. That is a good Hong Kong story we can talk about amid all the doom and gloom talk we have been hearing.
Cathay might not be the airline it used to be. However, the world is no longer the same as it was before the pandemic.
Cathay’s post-pandemic recovery matters to more than just the aviation and tourism industries. The airline has a history of having contributed to the development of not just Hong Kong but also the wider region. We need to support it to make it the pride of Hong Kong again.
Alice Wu is a political consultant and a former associate director of the Asia Pacific Media Network at UCLA
