Latest news with #HKExpress
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Business Standard
3 days ago
- Business
- Business Standard
HK Express airfares fall amid rising competition, aircraft issues: CEO
An accelerating fall in the price of air tickets from recent high levels is the biggest challenge at Cathay Pacific's budget arm HK Express, its CEO said, as competition rises after a third runway opened at Hong Kong's airport. Many airlines, including HK Express and its low-cost rivals, are capitalising on the third runway that opened in November to add more flights, CEO Jeanette Mao told reporters on the sidelines of the IATA annual meeting in New Delhi. HK Express was the world's fastest-growing airline last year, with flight frequencies up 46 per cent from 2023 according to aviation data firm OAG, and it expects to grow by more than 30 per cent this year, according to Mao. "But of course such aggressive growth in the supply also added pressure on the yield side," she said. HK Express annual yield, a proxy for airfares, fell 23 per cent year-on-year in 2024, mainly due to intense price competition on regional routes pushing airfares down. Yields at Cathay Pacific's full-service airline were down 12 per cent. Airfares in Asia are coming down from post-pandemic record highs as the region's airlines continue to restore seat capacity. Asia's air travel recovery has lagged the rest of the world due to China and Hong Kong being slower to return to international flying after COVID-19. Last year, capacity between Hong Kong and short-haul destinations surged by almost 40 per cent, so fares from Hong Kong to Southeast and Northeast Asia are under pressure, Mao said. Some Asian rivals with lower-cost home bases are using "fifth-freedom" rights, which have been allowed for many years in Hong Kong, to fly routes from the city to destinations outside the foreign airline's home country, directly competing with HK Express routes, Mao said. For example, Thai AirAsia in June launched a Bangkok-Hong Kong-Okinawa route. Another drag on HK Express has been the grounding of Airbus 320neo planes due to industry-wide issues with their Pratt & Whitney engines, Mao said. Half of the 10 A320neos in its fleet are still grounded, she said, adding there was not a definite timeline of when the issue can be resolved. The situation is improving but the airline needs more clarity from the engine manufacturer "to regain the confidence for our recovery aircraft reactivation", she said.
Business Times
3 days ago
- Business
- Business Times
HK Express airfares dragged down by rising competition out of Hong Kong, CEO says
[NEW DELHI] An accelerating fall in the price of air tickets from recent high levels is the biggest challenge at Cathay Pacific's budget arm HK Express, its CEO said, as competition rises after a third runway opened at Hong Kong's airport. Many airlines, including HK Express and its low-cost rivals, are capitalising on the third runway that opened in November to add more flights, CEO Jeanette Mao told reporters on the sidelines of the Iata annual meeting in New Delhi. HK Express was the world's fastest-growing airline last year, with flight frequencies up 46 per cent from 2023 according to aviation data firm OAG, and it expects to grow by more than 30 per cent this year, according to Mao. 'But of course, such aggressive growth in the supply also added pressure on the yield side,' she said. HK Express annual yield, a proxy for airfares, fell 23 per cent year on year in 2024, mainly due to intense price competition on regional routes pushing airfares down. Yields at Cathay Pacific's full-service airline were down 12 per cent. Airfares in Asia are coming down from post-pandemic record highs as the region's airlines continue to restore seat capacity. Asia's air travel recovery has lagged behind the rest of the world due to China and Hong Kong being slower to return to international flying after Covid-19. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Last year, capacity between Hong Kong and short-haul destinations surged by almost 40 per cent, so fares from Hong Kong to South-east and Northeast Asia are under pressure, Mao said. Some Asian rivals with lower-cost home bases are using 'fifth-freedom' rights, which have been allowed for many years in Hong Kong, to fly routes from the city to destinations outside the foreign airline's home country, directly competing with HK Express routes, she said. For example, Thai AirAsia in June launched a Bangkok-Hong Kong-Okinawa route. Another drag on HK Express has been the grounding of Airbus 320neo planes due to industry-wide issues with their Pratt & Whitney engines, she added. Half of the 10 A320neos in its fleet are still grounded, the CEO said, adding there was not a definite timeline of when the issue can be resolved. The situation is improving but the airline needs more clarity from the engine manufacturer 'to regain the confidence for our recovery aircraft reactivation', she said. Pratt, owned by RTX, did not immediately respond to a request for comment. REUTERS
Reuters
3 days ago
- Business
- Reuters
HK Express airfares dragged down by rising competition out of Hong Kong, CEO says
NEW DELHI, June 3 (Reuters) - An accelerating fall in the price of air tickets from recent high levels is the biggest challenge at Cathay Pacific's ( opens new tab budget arm HK Express, its CEO said, as competition rises after a third runway opened at Hong Kong's airport. Many airlines, including HK Express and its low-cost rivals, are capitalising on the third runway that opened in November to add more flights, CEO Jeanette Mao told reporters on the sidelines of the IATA annual meeting in New Delhi. HK Express was the world's fastest-growing airline last year, with flight frequencies up 46% from 2023 according to aviation data firm OAG, and it expects to grow by more than 30% this year, according to Mao. "But of course such aggressive growth in the supply also added pressure on the yield side," she said. HK Express annual yield, a proxy for airfares, fell 23% year-on-year in 2024, mainly due to intense price competition on regional routes pushing airfares down. Yields at Cathay Pacific's full-service airline were down 12%. Airfares in Asia are coming down from post-pandemic record highs as the region's airlines continue to restore seat capacity. Asia's air travel recovery has lagged the rest of the world due to China and Hong Kong being slower to return to international flying after COVID-19. Last year, capacity between Hong Kong and short-haul destinations surged by almost 40%, so fares from Hong Kong to Southeast and Northeast Asia are under pressure, Mao said. Some Asian rivals with lower-cost home bases are using "fifth-freedom" rights, which have been allowed for many years in Hong Kong, to fly routes from the city to destinations outside the foreign airline's home country, directly competing with HK Express routes, Mao said. For example, Thai AirAsia in June launched a Bangkok-Hong Kong-Okinawa route. Another drag on HK Express has been the grounding of Airbus ( opens new tab 320neo planes due to industry-wide issues with their Pratt & Whitney engines, Mao said. Half of the 10 A320neos in its fleet are still grounded, she said, adding there was not a definite timeline of when the issue can be resolved. The situation is improving but the airline needs more clarity from the engine manufacturer "to regain the confidence for our recovery aircraft reactivation", she said. Pratt, owned by RTX (RTX.N), opens new tab, did not immediately respond to a request for comment.
Bloomberg
4 days ago
- Business
- Bloomberg
HK Express CEO on Business Outlook
Jeanette Mao, CEO at HK Express, discusses her plans to keep the low-cost carrier's edge after becoming the fastest growing airline in 2024. She speaks with Guy Johnson on "Bloomberg: The China Show" from the sidelines of the IATA Annual General Meeting & World Air Transport Summit in New Delhi. (Source: Bloomberg)
South China Morning Post
29-05-2025
- Business
- South China Morning Post
Reputation of Hong Kong airport grows with facilities
After years with large areas shrouded in construction work, Hong Kong International Airport is just months away from opening a revamped second terminal that will hopefully help lift the city's status as a global aviation hub. Terminal 2 will open in stages from September, starting with the debut of a reconfigured hall that offers 41 parking spaces for cars, tour buses and coaches. The hall will host existing services all under the one roof, and will go into service just before the National Day 'golden week' holiday begins on the mainland. Airport Authority CEO Vivian Cheung Kar-fay said on Monday that some carriers, such as Hong Kong Airlines and HK Express, would be relocated to the second terminal in March next year. Check-in and departure services would be introduced early in the second quarter of next year, before a new concourse and facilities for arrivals were completed in 2027. The work is part of the airport's HK$141.5 billion expansion project that began in 2016, and the launch of a third runway last year was hailed as a 'game-changer' for aviation ambitions. Many cities the size of Hong Kong have had to build more than one airport, therefore it is heartening to see developments here keeping ahead of the expected growth in demand. Airlines are even being urged to put on more flights to take advantage of the increased capacity. Expansion, however, will require hard work. Last year, the airport handled 53.1 million passengers, 34.3 per cent more than in 2023. The level was still only 71 per cent of what it was in 2018 before the pandemic. Greater efficiency is a good start in the task of attracting travellers. Division of labour is planned for the two terminals. The new one will eventually be home to about 10 to 20 airlines and handling point-to-point flights and regional trips. Terminal 1 will serve airlines flying long-haul routes and operating morning flights. The airport already boasts strategic advantages thanks to nearby exhibition and tourism attractions as well as solid links to the mainland. With the new airport envisioned as becoming 'the landmark of Asia', the imminent arrival of more facilities is a welcome sign that the city is ready to soar back to its rightful place as a world-leading aviation centre.
