In a recent report, Cathay Pacific Group announced that it carried a whopping 1.32 million passengers in March, a stunning 4,000% increase compared to the 360,400 passengers in March 2022. While this recovery is impressive, it is essential to remember that Cathay Pacific’s numbers have yet to reach pre-pandemic levels, as it carried 3.11 million passengers in March 2019. However, the airline is beginning to experience the benefits of Asia’s reopening, with nearly 20% more passengers in March than in February.
Soaring Load Factors and Yield Management
As part of the aviation industry’s recovery in Asia, airlines are closely managing their capacity, leading to higher load factors and yields. For Cathay Pacific, the passenger load factor in March was an impressive 90%, well above the 46% in March 2022 and 84% in March 2019. By keeping capacity in check and behind demand, airlines are adopting a model that results in higher prices and profits as they recover from the pandemic. Cathay Pacific has faced additional challenges, including the massive disruptions and political unrest that targeted Hong Kong International Airport in 2019.
Positive Outlook and Reconnection with the World
Cathay Pacific Group’s Chief Customer and Commercial Officer, Lavinia Lau, stated that the first quarter of 2023 had been a time of continuous improvement and reconnection with the world. The airline resumed services to Shanghai Hongqiao Airport, Haikou, and Nagoya in March, witnessing significant demand for both business and leisure travel.
Flights to Japan and South Korea saw increased passenger traffic during the cherry blossom season, while Hong Kong-Taiwan flights experienced strong demand, including transit traffic from Taiwan to Europe and Indonesia via the Hong Kong hub.
Premium Offerings and Milestones
As a sign of recovery, Cathay Pacific has reintroduced first-class cabins on selected flights and is reopening airport lounges in Bangkok, Beijing, and Manila. The airline carried over 53,233 passengers on April 9th, breaking the 50,000 mark for the first time since the pandemic began.
Lau welcomed the return of the Hong Kong Sevens tournament in March, which Cathay Pacific co-sponsors, and highlighted the first mask-free event since the Hong Kong border reopened. The airline plans to increase the number of return flights between Hong Kong and the Chinese mainland progressively until the end of October, with approximately 160 flights per week covering 16 airports in 15 cities.
Source: Simple Flying
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