Few major airlines in the world were hit by the Covid pandemic as hard as Cathay Pacific, the flagship carrier of Hong Kong, or have labored so mightily to recover from it. Its business was decimated by some of the industry’s most expansive flight bans and quarantine requirements. And the pandemic wasn’t the start of Cathay’s troubles. In 2019, when Hong Kong was convulsed by pro-democracy protests, Cathay Pacific was caught in the crossfire with Beijing. Flights were canceled or delayed by airport sit-ins involving thousands of demonstrators, among them employees of the airline, Cathay Pacific. Chinese officials threatened to bar crew members who joined the protests, or even voiced support for them, from flying into China. Turmoil grew inside Cathay Pacific. The airline’s CE and chairman both resigned, and new leaders began cracking down on anything employees said or posted on social media that could anger China. In 2020, as the pandemic grounded its business, Cathay shuttered its regional division, Cathay Dragon. It parked 70 unused planes in the desert in Alice Springs, Australia, and fired 5,300 employees based in Hong Kong. As the city lengthened the mandatory quarantines, some aircrew had to enter three- to four-week-long “closed loop” work shifts, enduring weeks away from home that were devastating to employee morale. Today Cathay Pacific is still struggling to hire enough pilots, flight crew and other staffers to compete with other airlines. Its rivals “have emerged leaner, fitter and eager to take customers away from us,” the company’s CE, Ronald Lam, said in a video message to employees in January, trying to rally them around a plan “to survive and thrive.” Cathay Pacific climbed back to 50% of its prepandemic flight capacity only in March. The problems continue. Last week, in an internal memo, Lam informed Cathay Pacific’s staff that three employees had been fired after an audio recording went viral of cabin crew members ridiculing a passenger’s English. Lam said the employees had caused “significant damage to the image of Hong Kong and Cathay.”<br/>
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Cathay Pacific Airways is close to placing an order worth around $2b for Boeing 777-8F freighters as the Hong Kong carrier embarks on the partial renewal of a fleet of dedicated 747 cargo jets, industry sources said on Monday. The selection follows a hard-fought battle for the business of one of the world's top-five freight airlines, which had been comparing the all-freight version of the future Boeing 777X jet family with an upcoming cargo model of the existing Airbus A350. Industry sources have said the competition involved an initial purchase of around half a dozen aircraft, worth some $2b at list prices before traditional airline discounts. Cathay Pacific said it had no immediate announcement to make. "We continue to invest in and grow our fleet with the addition of new, state-of-the-art and fuel-efficient aircraft," a Cathay spokesperson said by email. "We have no specific updates or announcements to make at this time regarding the fleet." Boeing and Airbus declined comment on commercial discussions. Boeing launched the 777-8F freighter with an order from Qatar Airways in January 2022, six months after Airbus launched development of the A350 Freighter in a bid to weaken its US rival's traditional grip on the market for freighters. Cathay Pacific told analysts last November it was looking at more freighter capacity and working "actively" with planemakers to acquire some of the new freighters coming up after 2025. Situated at the heart of pre-pandemic trade lanes, Cathay's decision on where to place bets for the next phase of its cargo development is seen as a key test for the two freighters because the airline operates underlying 777 and A350 passenger models.<br/>
Qantas said international flying will be at least twice as lucrative in the post-Covid era, thanks to new income from marathon direct flights that crisscross the world and deep cost cuts during the pandemic. In its first investor day in four years, the Australian airline on Tuesday laid out the projected boost from a vast fleet overhaul and a three-year turnaround plan implemented shortly after Covid grounded travel in 2020. The forecast for bumper profit margins suggests there will be no immediate end to soaring fares on overseas flights that are supercharging airline revenues. The optimistic outlook reflects an aviation industry that was forced to become more efficient to weather the Covid crisis, a worldwide reset that is now enriching investors. Qantas said it also expects fatter margins in its domestic business, the airline’s earnings engine, due to rising demand and the introduction of more efficient jets. Operating profit at the loyalty unit could double by 2030 as it expands into holidays and hotels, the carrier said. “This is a structurally different business than it was before Covid, operating in markets that have also changed,” Qantas CEO Alan Joyce said in a statement accompanying a 97-page investor presentation. Operating profit margins at Qantas International will grow from about 5% before the pandemic to more than 8% next year, and to between 10% and 12% in following years, the airline said. Margins at the domestic business will be 18% next year and beyond, up from 13% before Covid, Qantas said.<br/>
Qantas has unveiled new customer service improvements, sustainability investments and new earnings targets through to 2030 at its first investor day since before the COVID-19 pandemic. The airline expects its margins on international flying to double by 2030 due to its planned extra-long-haul direct services from Australia to Europe and the US, and its deep cost cuts over the pandemic. The group said its domestic business should also deliver fatter margins due to its renewed fleet plan and continued demand. Qantas will overhaul its app towards the end of the year so customers can track their bags and have more control over bookings, after a period marred by customer dissatisfaction over the carrier’s inflexible booking system and a brief increase in lost bags when borders fully reopened in 2022. Qantas will also amend its boarding process from October to improve on-time performance and better recognise members of its frequent-flyer program. Under the changes, Qantas passengers will board in groups based on frequent-flyer status and seat location. The group is also considering changes to the gate layout to reduce congestion and the time passengers spend queuing. The carrier also called on the Albanese government to follow the UK, Europe, the US and Japan in introducing a sustainable aviation fuel blending mandate. Qantas chief delegate and CFO Vanessa Hudson, who will take over as CE from Alan Joyce in November, said the group’s activity must be underpinned by sustainability. “We’re determined to be a leader in this space and that’s supported by the new commitments we’ve made today, as well as calling for more action industry-wide in the form of a sustainable aviation fuel mandate,” she said.<br/>