Hong Kong's Slow Climb 


A Cathay Pacific Plane Tail

In part one of this week's podcast, Gordon Smith and Jay Shabat discuss Q2 results from Delta Air Lines and Norwegian, looking for clues as to what the future could hold for other operators. In part two, we turn our attention to Hong Kong and examine the factors behind its slow aviation recovery after the pandemic.

Listen Now

Apple Podcasts | Spotify | YouTubeRSS

Key Points:

Part 1: Latest Q2 Earnings

  • Focus on Delta and Norwegian Air earnings
    • Delta: Disappointing unit revenue trends, lower-than-expected unit revenues
    • Norwegian: Negative vibes, demand and cost issues, union tensions, currency concerns, and delays in Boeing planes
  • Upcoming United Airlines earnings report
  • General sentiment: Early negative vibes, some airlines doing well despite overall bearish mood
  • Possible factors for weaker results: Over-optimism in forecasts, systemic issues

Part 2: Hong Kong's Slow Rebound

  • Pre-pandemic: World's 12th busiest airport, now 30th
  • Cathay Pacific's slow recovery
    • Long dormancy during the pandemic, stringent quarantine rules for crews
    • Current issues: Crew shortages, flight cancellations
  • Political changes affecting tourism
    • Potential impact of changes in Hong Kong's relationship with Beijing
  • Decline in operations of other airlines
    • Significant seat count reductions for carriers like Singapore Airlines, Emirates, Qantas, British Airways. Some airlines like United and American have reduced or ceased operations in Hong Kong
  • Cathay Pacific's financial performance
    • Better financial performance due to cost-cutting and high yields
    • Increased traffic due to lack of direct flights between China and India, China and the US
  • Hong Kong's infrastructure development
    • New runway added, fully operational by the end of the year
    • Expected to support long-term growth despite current challenges

Photo credit: Kevin Chung/Flickr

Up Next

The Airline Weekly Lounge Podcast

Breaking Down Japan Airlines and British Airways

After a sensational run of impressive profits in the 2010s, what can Japan Airlines do to restore its weakened commercial cut-through?
The Airline Weekly Lounge Podcast

What a Frontier-Spirit Merger Means for Air Travel

There are plenty of ifs, buts, and maybes, however, if a Frontier-Spirit merger does occur, it'll shake up the U.S. airline industry in a huge way.
The Airline Weekly Lounge Podcast

Breeze Airways' Big Break: A ULCC Finally Profits

As earnings season gathers pace, Jay Shabat and Meghna Maharishi take stock and share their insights on the latest numbers from Breeze Airways and American Airlines.
The Airline Weekly Lounge Podcast

Why Egypt Is an Airline Market Worth Watching

In this episode, Gordon and Jay discuss the current state of the Egyptian aviation scene, highlighting the booming tourism sector despite regional unrest. They explore the factors contributing to Egypt's…