The Cathay Group, owners of Cathay Pacific and HK Express, has announced it will invest more than HK$100 billion ($13 billion) between now and 2031 as part of a strategy to strengthen Hong Kong’s international aviation hub status and “strengthen the overall passenger experience”.
According to the carrier, the investment program will include major investments in its fleet (including the recent order for 30 Airbus A330neos), onboard cabin products, lounges, and digital and sustainability leadership as the organization sets its sights on building its customer base and its home base airport at Hong Kong’s Chep Lap Kok International Airport (HKG). The airport is looking to inaugurate a third runway which will propel annual passenger numbers traveling through the airport.
“With the Three-Runway System soon to propel Hong Kong’s aviation sector into a new age, the coming years are going to be an incredibly exciting time for Hong Kong and for Cathay with ample new opportunities to grow, said Cathay Group Chair Patrick Healy. “As the city’s home airline, we are a key contributor towards the future success of the Hong Kong international aviation hub. Our substantial investments further demonstrate our unwavering commitment to fostering Hong Kong’s ongoing economic development.”
“With over HK$100 billion being invested in our fleet, cabin products, airport lounges, and more, we are firmly turning the page and embarking on a bold new strategy for the future, not just in scope but also in quality. Cathay is entering an exciting new era underpinned by our determination to become one of the world’s greatest service brands,” he added.
This investment includes the announcement made by Cathay Pacific on August 7, 2024, for 30 Airbus A330-900 aircraft with the right to acquire an additional 30 additional aircraft in the future. These new regional widebody aircraft are expected to be delivered from 2028 and will join the Cathay Pacific fleet principally serving destinations in Asia.
With that order, Cathay Pacific now has more than 100 new-generation aircraft on order with the right to acquire over 80 additional aircraft in the future. With orders covering narrowbody, regional widebody, long-haul widebody, and large freighter aircraft, these investments “promise to modernize and expand Cathay’s fleet, taking it to the next level” states the carrier. Furthermore, the enhanced fuel efficiency offered by the new airplanes is being seen as a crucial part of the group’s strategy to reduce carbon emissions and help Cathay achieve its carbon net zero by 2050 goal.
Cathay Pacific is also improving the customer onboard experience with new cabin products launching in each of the coming three years. This begins with the airline’s all-new Aria Suite, Premium Economy, and refreshed Economy coming to its redesigned Boeing 777-300ER aircraft later in 2024 his year, followed by a first class experience onboard its yet-to-be-delivered Boeing 777-9s which will launch in 2025. A new cabin and flat-bed Business class product on its existing A330 aircraft in 2026.
In addition to new cabin products, complimentary Wi-Fi will be progressively offered to business class customers and Diamond loyalty members in the coming months. Meanwhile, on the ground, Cathay Pacific will be launching newly designed flagship lounges in Hong Kong, Beijing, and, for the first time, a dedicated lounge in New York, over the next three years.
Strong recovery
All these developments confirm that the carrier is back on track after a torrid time both during and immediately after the COVID-19 pandemic. All of the aircraft that were in long-term parking have returned, and Cathay remains on track to reach 100% of its pre-pandemic flights within the first quarter of 2025. To support that pace of growth, Cathay is increasing its group headcount by 5,000 people in 2024 to a total of 29,000.
Hong Kong serves as the main international aviation hub for both Cathay Pacific as the group’s full-service carrier as well as HK Express as the budget subsidiary of the Cathay Group. Between the two carriers, they currently fly to more than 80 passenger destinations across the globe, expected to rise to 100 by 2025. So far in 2024, 10 new destinations have already been announced, eight of which have commenced services with Riyadh and Cairns coming later this year.
