HK Express Airbus A320neo
Prolonged grounding of HK Express’ Airbus A320neo fleet has brought the Hong Kong-based LCC into the red for the first half of 2024, although its parent Cathay Pacific group has established a “satisfactory arrangement” with suppliers on compensation.
HK Express posted a HK$73 million ($9.3 million) loss for the first half of 2024, against the HK$333 million profit in the same period in 2023. Cathay’s group CEO Ronald Lam has attributed the loss primarily to the grounding of the A320neo family aircraft due to the global Pratt & Whitney geared turbofan (GTF) engine issues, as well as ticket pricing pressures due to strong competition from short-haul carriers from both Hong Kong and abroad.
The Aviation Week Network Fleet Discovery database shows HK Express has 10 A320neos and eight A321neos, of which six A320neos are stored. The airline also has another five in-service A320ceos and 11 in-service A321ceos.
HK Express is expecting four more A321neos in 2024 and another four in 2025.
Lam said the airline is expecting the GTF issue to continue for a “few more years” and said it has reached a satisfactory arrangement in areas of compensation with the suppliers, without giving more specifics.
Aviation Week has reached out to Cathay Pacific for more information.
Lam remains optimistic on HK Express as a brand and investment. Being the only Hong Kong-based LCC, the airline will benefit from the three-runway system (3RS) at Hong Kong International airport. The third runway was commissioned in 2022 and the entire 3RS is due to be commissioned by the end of 2024. Operating at 140% of pre-pandemic capacity, Lam credited the airline with being the growth engine during the recovery phase.
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