Cathay Pacific today announces that it will launch a new service to Newark in the US from March 2014, providing its home base Hong Kong with a direct link to New Jersey State's largest city that is also an alternative gateway to New York City. Last month, the airline made another announcement of its plan to start flying to Male, The Maldives, from October. The island nation in the Indian Ocean has become increasingly popular among affluent Chinese travellers, and this new service by CX can potentially attract a lot of transit business from Mainland China.
These new routes are part of the airline's ongoing network restructuring efforts that have seen the Cathay Pacific group turning an attributable profit of HK$24 million (US$3.1 million) for the first six months of 2013, compared to a restated loss of HK$929 million in the first half of 2012. The airline has also attributed better profitability to its expanding B777-300ER fleet, which has helped mitigate the effect of high oil prices as the aircraft are more fuel efficient.
CX's new premium economy class, it is reported, has been popular and increased economy class yield for the airline since it was launched last year. The new product was available on 68 long-haul aircraft by the end of June and the number is expected to increase to 85 by the year's end. Mumbai and Delhi are two destinations that have performed well for the airline over the period and the new business class and premium economy are believed to have played a role.
Other markets that are doing well include Kolkata, which CX started flying to last year, and Japan, whose tourism has grown on the back of a weakened yen.
The Cathay Pacific group has scheduled a press conference to announce its interim results this afternoon. Stay tuned for another report on www.businesstraveller.asia.