Editorial | Cathay Pacific must remain vigilant to navigate new turbulence
War in the Middle East is causing significant disruption, but a focus on regional routes can help ensure the airline’s solid recovery continues
Cathay Pacific Airways posting a third consecutive year of profits was welcome proof the Hong Kong flag carrier has stayed the course to rebuild a solid foundation after pandemic turbulence. After emerging from those dark financial clouds, it must now nimbly navigate the next economic storm – an increasingly unpredictable era of global volatility.
While painful for travellers, the increases are understandable and route suspensions are a responsible prioritisation of safety. With further moves likely, carriers must be transparent with customers to maintain trust amid the uncertainty.
The aviation industry faces many factors beyond corporate balance sheets. HK Express saw that in 2025, with a HK$996 million loss partly blamed on unfounded earthquake rumours in Japan as well as Pratt & Whitney engine issues and shifting traveller demands.
Cathay would be wise to look closer to home as passengers shy away from Middle Eastern routes. Demand for travel within Asia could soon hold opportunity, and doubling down on regional frequencies is a hedge against the bottlenecks of long-haul corridors. On the other hand, a potential turnaround in the conflict could quickly reopen Middle Eastern skies and require route planners to pivot on a moment’s notice.
The forecast is not all stormy. The group plans to grow its capacity by 10 per cent in 2026 with new aircraft. Cathay’s prospects will fortify Hong Kong’s status as a premier international aviation hub as long as it can maintain the agility that set the stage for its recovery.