United States-based Delta Air Lines and United Airlines set to restore or expand services, as Etihad Airways seeks to renew old route The plans of three overseas airlines to resume or expand services for their US and Middle East routes to Hong Kong reaffirm its aviation hub status despite geopolitical challenges, analysts have said, as the number of carriers flying to the city exceeded pre-pandemic levels.
The experts also said they expected Cathay Pacific Airways, the city's flag carrier, to face heightened competition for direct US services and indirect Gulf-transit options, while passengers could anticipate more choices and moderate fare reductions for long-haul flights.
Among the airlines returning to Hong Kong is the United States-based Delta Air Lines, which will be bringing back its non-stop flights between the city and Los Angeles from June next year.
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The airline ran a direct service between Hong Kong and Seattle until 2018, with the route discontinued amid challenging market dynamics.
Fellow US carrier United Airlines will launch an intra-Asia route that will connect Los Angeles, Hong Kong and Bangkok, and another bridging San Francisco, Hong Kong and Ho Chi Minh City. The new routes are set to launch in late October this year.
It earlier resumed its nonstop service between Hong Kong and San Francisco in March 2023 after axing the route at the start of the Covid-19 pandemic in 2020.
Abu Dhabi-based Etihad Airways, meanwhile, plans to restart flights to Hong Kong from November 3 this year, with the service to involve five flights a week.
The original service also ceased operating during the pandemic.
Hong Kong's Airport Authority previously announced it was encouraging overseas airlines to use the extra capacity offered by the airport's three-runway system.
An incentive programme offers carriers up to HK$7 million (US$891,700) annually if they operate new routes to the city and increase the frequency of their flights. The policy has already attracted 30 airlines to open 70 new routes.
A spokesman said the authority was pleased to see foreign carriers resuming services to Hong Kong, offering more long-haul trunk routes to North America, Europe and Australasia.
He said the airport's flight network now covered more than 200 destinations worldwide, while the number of airlines running routes to the city had reached 140, exceeding levels from before the pandemic.
"[The authority] will continue to attract more airlines to operate flights to Hong Kong and further strengthen Hong Kong International Airport's position as an Asia aviation hub and a prime double gateway connecting [mainland China] to the world," he said.
Lily Agonoy, managing director of Jebsen Travel, said the move by United, Delta and Etihad reaffirmed Hong Kong's robust aviation prospects and reflected solid trans-Pacific demand even amid geopolitical uncertainties.
"Their moves collectively underscore renewed confidence in Hong Kong's strategic importance ... and recovery," she said.
"There is still high demand for the US despite the geopolitical situation due to many factors, like for commercial activities ... for study, and for visiting friends and relatives."
She said Delta's return showcased its positioning of Hong Kong as a direct gateway beyond its Incheon-focused trans-Pacific network, underscoring the city's premium market potential for the area.
"Etihad's inclusion of Hong Kong in its Asia-unlock network and Delta's focus on serving the city's local market rather than onward connections both highlight the city's stand-alone market appeal," Agonoy said.
Agonoy said Cathay Pacific would undoubtedly face intensified competition for both direct and indirect long-haul flights, with airfares expected to drop as a result.
"While Cathay Pacific will face heightened competition on direct US services and indirect Gulf-via options, its entrenched hub advantages and premium positioning should mitigate market share erosion," she said.
"Passengers can anticipate more choices and are likely to have moderate fare reductions on long-haul itineraries, while Cathay leverages cargo strength and loyalty to defend its competitive edge."
Jason Li Hanming, a US-based aviation analyst, said Hong Kong's extensive connections to the mainland and its "Islamic friendliness" gave it strong appeal for overseas airlines seeking to expand their networks.
He said that with more airlines running the American routes, passengers could expect lower airfares.
Cathay would also face fierce competition in Middle Eastern and European markets due to the emergence of more rivals, such as mainland and Gulf airlines, he added.
"For the Middle East or Europe market, the competition is quite fierce: not only from Hong Kong but also from those in neighbouring Shenzhen and Guangzhou, and Gulf countries, such as Qatar and Emirates," he said.
"All these new competitors are lowering the cost from Hong Kong to the Middle East and Europe."
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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.
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