DUBAI—HK Express CEO Jeanette Mao says the Cathay Pacific subsidiary continues to see strong demand although cautioned about “the normalization of airfare trends,” indicating increased price competition.
“We’ve witnessed an exceptionally strong rebound of air travel over the past year,” Mao says on the sidelines of the IATA AGM in Dubai. “This year we have seen continued strong demand, particularly during Chinese New Year, Easter and the Labor Day holidays. Advance bookings for the summer season are also quite encouraging.”
Mao says that capacity is currently running about 50% higher than 2019 levels and the LCC has “every reason to be confident and optimistic” about the next 12 months. However, she adds, "We are also quite cautious about the normalization of airfare trends, indicating a more competitive pricing environment.”
Despite slot constraints at Hong Kong International Airport (HKG), Mao says the airline plans to continue expanding its network, boosted by strong demand in the Greater Bay Area and a growing fleet of Airbus A320neo-family aircraft. Additionally, she expressed optimism that the completion of the Three-Runway System project at HKG would allow the carrier to explore new markets.
The third runway, commissioned in November 2022, includes reclaiming about 650 hectares of land north of the existing airport island. It features a long runway and supporting taxiway, along with the expansion of Terminal 2. The Three-Runway System is projected to be completed by the end of 2024.
“Also, the One Belt, One Road initiatives, and the easing of visa requirements, between mainland China and southeast Asian countries will further stimulate demand," Mao adds.
HK Express has been expanding its Chinese network from HKG in recent months, adding flights to Beijing Daxing International Airport in March, followed by operations to Sanya in May. Other recent new routes have included service to Bangkok Don Mueang, which commenced in April, and the launch of fights to Clark in the Philippines from June 6.
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