Cathay Pacific has continued its post-pandemic investment drive by placing another major aircraft order to support its fleet upgrade plans, while in the short term it is working to complete its network and capacity recovery.
The latest order is for Airbus A330neos, fulfilling its need for a mid-size widebody aircraft for both replacement and growth.
This represents its third major aircraft order since the beginning of 2023. The airline has also been investing in other aspects of its product, backed by its return to profitability and the build-up of international services.
While still firmly in the black, profits have come under more pressure in the first half of this year as fares have eased from high levels in 2023 – a phenomenon common to most Asia-Pacific airlines.
Cathay Pacific’s capacity increase has been gradual, but it has reached new post-pandemic highs. It is aiming to have 100% of its pre-pandemic flights in the first quarter of 2025, which would require a significant boost from current levels.
One of the main pacing factors is workforce availability. This has caused headaches for Cathay Pacific during its recovery phase, and it still needs more pilots, in particular, to meet its network targets.
However, the airline is adamant that its hiring and training programmes are on track to ensure it has the numbers it needs.
Part one of this analysis focuses on fleet investments, and the second part on its financial, network and capacity recovery.