The situation in Hong Kong continues to worsen with no end in sight. The Chinese backed leader and city government won’t budge and the protestors just get more frustrated nobody listens to them.
With growing violence arguably playing into the authorities hands, and a Chinese military intervention seemingly inevitable at some stage, aviation is suffering as visitor numbers plummet.
Cathay Pacific’s declining situation has forced it to announce the early retirement of a 777-300 and an A333, more are likely if the normally busy Christmas period flops. On top of that it’s delaying 3 A321neo for Cathay Dragon and Hong Kong Airlines along with another A320neo.
The overall cut in cargo throughout Hong Kong has been slower as it’s a big transit hub, but declines there and in passenger numbers, continue to press the aviation market hard.
Flights from Europe and North America are said to be down from 85% to around 70% utilisation, putting them in the loss making category.
On top of that fares to the city have slumped on lower demand.
The outlook for aviation in Hong Kong is likely to remain negative for some time and Cathay Pacific Group airlines are going to have a financially difficult year, just when things were getting better.
The company is facing an extraordinary level of scrutiny in China itself as the mainland authorities press crew and the airline to tow the Chinese governments line. the implication being that if it doesn’t things will be made worse for it – and sooner rather than later.