Cathay Pacific Eases Growth Plans and Predicts Passenger Demand Rise in 2026
Cathay Pacific is adjusting its expansion strategy, planning to slow its network growth in the coming year while focusing on strengthening existing routes in Thailand and Southeast Asia. The airline is currently refitting its Boeing 777-300ER fleet and awaiting delivery of 35 new 777-9 jets, despite delays from Boeing that push first deliveries to 2027. Cathay Pacific's management, including Chief Customer and Commercial Officer Lavinia Lau, reports that capacity on key Southeast Asian routes has already returned to 2019 levels, with flights between Hong Kong and Bangkok or Singapore operating up to eight times daily. The airline is also expanding its low-cost carrier HK Express, adding flights to Malaysia, and focusing on boosting load factors and operational performance without opening new routes in Thailand. Meanwhile, Cathay Pacific forecasts a recovery in passenger demand for 2026, especially from long-haul markets such as the US, driven by increased transit passenger flow and demand for long-haul routes like Dallas. The airline is also enhancing passenger experience with new business class suites and retrofitting regional aircraft. Despite rising competition from mainland carriers, Cathay Pacific aims to maintain its market share by leveraging Hong Kong as a transit hub for Chinese travelers and other regional markets. The cargo segment remains important, with increased demand for electronics, fruits, vegetables, and pharmaceuticals, as manufacturers seek alternatives outside China.
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