How Singapore Airlines soared while regional rival Cathay Pacific stalled
Just as Singapore Airlines was giving employees an eight-month salary bonus after record profits, Hong Kong was giving away more than 4,400 free tickets for regional rival Cathay Pacific as the city sought to encourage visitors to return. Shares of Singapore Airlines have soared to their highest levels in more than three years after the national carrier made clear the strength of its post-coronavirus pandemic recovery with an annual profit of S$2.16b ($1.6b) for the year ending in March. In stark contrast, shares in Hong Kong-listed Cathay Pacific have dropped nearly 40% from a high in April 2019. In March, the airline unveiled a HK$6.5bn ($830m) loss for 2022 and shares have remained flat since. Their financial divergence reflects the rise of Singapore, one of the first countries in Asia to reopen its borders after the pandemic, and the burnishing of its status as a business hub. Hong Kong, on the other hand, remained largely closed off to travel until late last year, losing its status as the region’s busiest airport to Singapore in 2022. Its slow reopening has affected Cathay Pacific, which is also reeling from labour shortages. “Singapore was ahead of everyone last year in Asia-Pacific [with the reopening],” said Brendan Sobie, an independent aviation analyst based in Singapore. “They benefited from that tremendously. “I don’t think Cathay’s first financial year after reopening will look like Singapore’s,” he added. “That honeymoon period caused by supply and demand imbalance is waning — they’ve largely missed out on those market conditions.” Hong Kong tourism is still very early in its recovery, which is reflected in the carrier numbers. Singapore Airlines has reached nearly 80% of pre-pandemic passenger capacity, while Cathay Pacific is still at less than 50%. Singapore Airlines and its wholly owned budget airline Scoot carried 2.7m passengers in April, an 85% year-on-year increase and just under the 3.1m passengers they flew in the same month in 2019. Cathay Pacific carried 1.4m passengers in April 2023, about 44% of the number in April 2019. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-06-01/star/how-singapore-airlines-soared-while-regional-rival-cathay-pacific-stalled
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How Singapore Airlines soared while regional rival Cathay Pacific stalled
Just as Singapore Airlines was giving employees an eight-month salary bonus after record profits, Hong Kong was giving away more than 4,400 free tickets for regional rival Cathay Pacific as the city sought to encourage visitors to return. Shares of Singapore Airlines have soared to their highest levels in more than three years after the national carrier made clear the strength of its post-coronavirus pandemic recovery with an annual profit of S$2.16b ($1.6b) for the year ending in March. In stark contrast, shares in Hong Kong-listed Cathay Pacific have dropped nearly 40% from a high in April 2019. In March, the airline unveiled a HK$6.5bn ($830m) loss for 2022 and shares have remained flat since. Their financial divergence reflects the rise of Singapore, one of the first countries in Asia to reopen its borders after the pandemic, and the burnishing of its status as a business hub. Hong Kong, on the other hand, remained largely closed off to travel until late last year, losing its status as the region’s busiest airport to Singapore in 2022. Its slow reopening has affected Cathay Pacific, which is also reeling from labour shortages. “Singapore was ahead of everyone last year in Asia-Pacific [with the reopening],” said Brendan Sobie, an independent aviation analyst based in Singapore. “They benefited from that tremendously. “I don’t think Cathay’s first financial year after reopening will look like Singapore’s,” he added. “That honeymoon period caused by supply and demand imbalance is waning — they’ve largely missed out on those market conditions.” Hong Kong tourism is still very early in its recovery, which is reflected in the carrier numbers. Singapore Airlines has reached nearly 80% of pre-pandemic passenger capacity, while Cathay Pacific is still at less than 50%. Singapore Airlines and its wholly owned budget airline Scoot carried 2.7m passengers in April, an 85% year-on-year increase and just under the 3.1m passengers they flew in the same month in 2019. Cathay Pacific carried 1.4m passengers in April 2023, about 44% of the number in April 2019. <br/>
