Cathay Pacific Group, led by CEO Ronald Lam, is actively pursuing a strategy to expand its global network, with plans to serve over 100 destinations. The airline group, which includes Cathay Pacific, Cathay Cargo, HK Express, and Cathay Lifestyle, is focusing on connecting China to the world and increasing flight frequencies, particularly within Asia.
Key Takeaways
- Cathay Pacific Group plans to fly to 106 airports globally by mid-2026.
- The group emphasizes connecting China to international markets.
- HK Express plays a key role in new route development and point-to-point travel.
- Future growth prioritizes increased flight frequencies over new destinations.
- The 'Belt and Road' initiative is a major focus for Cathay Pacific's expansion.
Cathay Pacific's Post-Pandemic Strategy
Ronald Lam, CEO of the Cathay Pacific Group, recently discussed the company's strategic direction at Routes World in Hong Kong. He oversees a broad portfolio that includes the passenger airline Cathay Pacific, its cargo division, the low-cost carrier HK Express, and Cathay Lifestyle. Lam also serves as chairperson for HK Express.
Lam expressed confidence in the group's current position, stating,
"We are stronger and better than we were before the coronavirus."He noted that the pandemic period was used to implement significant reforms, which he believes have prepared the group for future challenges and opportunities.
Understanding the Cathay Pacific Group
The Cathay Pacific Group operates under a multi-brand strategy. Cathay Pacific targets the premium travel and freight markets, focusing on connecting passengers and high-value cargo. In contrast, HK Express serves the value-oriented, point-to-point market, often launching new routes without direct competition. This allows the group to address different segments of travel demand.
Connecting China to the World
A central element of Cathay Pacific's passenger operation strategy is its role in global connectivity. Lam highlighted this, saying, "We connect China to the world and the world to China." This focus is supported by booking data for the 12 months leading up to August 2025.
Analysis of connecting traffic through Hong Kong shows that China is a significant component in many key markets. Seven of the top ten country markets involved China. These include routes such as US-China, Australia-China, India-China, Taiwan-China, Indonesia-China, Canada-China, and Singapore-China. Other important routes were Australia-Japan, India-Japan, and Indonesia-Japan.
Key Connectivity Data
- 7 out of 10 top connecting country markets involve China.
- This highlights the strategic importance of China for Cathay Pacific's network.
Cathay Pacific targets the premium sector, which includes substantial business travel and freight. Connecting passengers are also crucial for this segment. HK Express, on the other hand, focuses on the point-to-point, value-driven market. Despite their different approaches, both airlines codeshare, and HK Express frequently introduces new routes. Data from Cirium Diio indicates that 43% of HK Express routes face no direct competition. This dual-brand approach enables the group to serve various major Asian cities effectively.
Expanding the Network: Over 100 Destinations
The combined network of Cathay Pacific and HK Express is set to reach a significant milestone. According to their schedule submissions to Cirium for October 2025 to July 2026, the group plans to operate flights to 106 airports globally. This extensive network is strongly supported by a robust presence in mainland China.
Collectively, the two airlines serve 23 airports within China, dedicating approximately one-fifth of their total flights to this market. This strong domestic foundation supports their broader international expansion goals.
New and Returning Routes
For 2025 and 2026, Cathay Pacific has either added or announced nine new or returning routes. These include Adelaide, Brussels, Dallas/Fort Worth (which is the airline's longest route), Hyderabad, Phnom Penh, Munich, Rome, Seattle (marking its ninth passenger destination in North America), Tel Aviv, and Urumqi.
HK Express has also been active, adding 11 new destinations. These are Changzhou, Cheongju, Daegu, Guiyang, Ishigaki, Komatsu, Kota Kinabalu, Kuala Lumpur Subang, Sendai, Shimojishima, and Yiwu. These additions demonstrate the group's commitment to expanding its reach across different market segments.
Recent Route Additions
- Cathay Pacific: 9 new/returning routes (e.g., Dallas/Fort Worth, Seattle, Rome).
- HK Express: 11 new routes (e.g., Kuala Lumpur Subang, Sendai).
Strategic Growth and Future Focus
The opening of Hong Kong's third runway in November 2024 has created new opportunities for the Cathay Pacific Group. Lam confirmed that the airline already has a "very strong" network in North America, Europe, and Australia. However, he indicated that some additional markets would be introduced in these regions.
Within Asia, growth at the group level is expected to come primarily from HK Express rather than Cathay Pacific. A key driver for Cathay Pacific's development, according to Lam, is to serve countries, cities, or hubs associated with China's 'Belt and Road' initiative. This initiative aims to enhance connectivity and cooperation across multiple continents.
"Our newest growth opportunity is to serve 'Belt and Road' countries, cities, or hubs in support of China's development," Lam stated. "The Middle East will be important in this, along with flights to some hubs and Dallas. Such routes will help with the initiative."
This explains the return to Riyadh in October 2024, with flights increasing to daily. Routes to hubs like Urumqi are intended to reach Central Asia, while Dallas can connect to Central and South America, supporting the broader 'Belt and Road' objectives.
Prioritizing Frequency Over New Destinations
Looking ahead, Lam emphasized that increasing flight frequencies will be more important than adding many new destinations for future growth. Higher frequencies are expected to improve the number of connections available, boost tourism to Hong Kong, and enhance the group's competitiveness and market share.
Specifically for Cathay Pacific, this focus on frequency will be particularly relevant within Asia.
"Our network in Asia is mature, so growing the number of flights will be a priority," Lam explained.This strategy aims to deepen market penetration and optimize existing routes.
However, this approach faces a significant challenge: slot availability at major airports. Lam noted, "Slots are nowadays a bigger constraint worldwide than traffic rights, which is restricting our growth." He specifically mentioned congested airports like London Heathrow (where Cathay Pacific operates five passenger flights daily), New York JFK (three daily), and key Chinese airports.
To address slot constraints and increase capacity, the group plans to utilize larger aircraft. The incoming Boeing 777-9s, with 35 frames on order, will be crucial in this strategy, allowing more passengers and cargo to be carried on existing routes.