Cathay Pacific is optimistic about growth in Southeast Asia, particularly with regard to Bangkok -- one of its best performing routes.
"We have seen a strong recovery across Southeast Asia. Thailand has been one of the strongest markets to recover," said Dominic Perret, regional general manager for Southeast Asia and Southwest Pacific at Cathay Pacific.
Mr Perret said after Hong Kong reopened, the region's growth has been on track with global passenger traffic. In May, it reported a recovery of 53% compared to 2019's level.
The routes from Hong Kong to Bangkok, Singapore and Manila showed the strongest performance among its 13 destinations in Southeast Asia.
He said Thailand remained attractive for Hong Kong visitors and travellers from other countries, while Thai tourists also love to visit Hong Kong and Japan.
It serves 5-6 daily flights between Hong Kong and Bangkok at present, compared to at least nine flights prior to the pandemic.
The airline hopes to operate at least seven daily flights by January 2024.
Cathay Pacific is also operating 1-2 daily flights to Phuket by utilising Airbus A330s, which have more capacity than the A321neo it previously used at the start of the year.
For Bangkok flights, the utilisation of wide-body jets, such as A350-900s and Boeing777s, recorded an average load factor of 90% in May, and the airline expects to maintain the strong performance in July and August.
As Cathay has already resumed all its destinations, except for Yangon in Myanmar, it will now focus on increasing flight capacity to match 2019's level, with a target to gain a 70% recovery rate for global flights by the end of this year, and ramping up to a full recovery next year.
The key drivers will be strong recovery in tourism and the overall economy in Hong Kong, the carrier's aviation hub.
The three runways at Hong Kong International Airport are expected to be ready for full-scale operation by next year, while the shortage in ground handling personnel across airports within Southeast Asia has already subsided, said Mr Perret.
To strengthen the market, the airline recently partnered with Siam Piwat's loyalty programme, allowing a conversion scheme between Asia Miles and Siam Piwat's VIZ coins, which would help attract more tourists to use this benefit in Thailand.
Despite risks of global recession and inflation, he said the airline's performance would continue to improve, driven by strong demand from leisure tourists, families and business trips, while the airline utilised a hedging strategy to control its fuel expenses.
Cathay Pacific Group forecasts a profit of between HK$4 billion and HK$4.5 billion in the first half, after recording a HK$33.7 billion loss during the three years of the pandemic.
Its fleet contains 222 aircraft, with 28 still parked at Alice Springs in Australia.
The group aims to add 48 more aircraft to its fleet by 2028, of which 11 should be delivered within this year.