Originally Posted by
oldchinahand
Whos language issues I am wondering ?
HKG and Cathay airfares are about the same levels as most top Asian airlines and fares to the US are not noticeably higher than to other popular long haul destinations.
The prime reason why airfares are high is demand when that decreases or is spread over more flights prices will weaken. -nothing new here.
Of course, CX competition is happy to match high CX fares as there is a lack of capacity from HK. While fares have increased everywhere, HK increase is dramatic. Of course, the increase depends on destinations.
Overall HK airport is operating at some 50% of its pre covid/protest flights; it not only CX. Demand is more than 50% of pre covid/protest. I don't think that many Asian airports see such a low supply.
Chinese airline are operating less than 10% of its pre covid flights to the US. Not much better to Europe (you see very few Chinese tourists in Europe). But many pax transit through HK adding to demand. But passports and visas are still a bottleneck for Chinese pax.
https://www.scmp.com/economy/china-e...-calls-support
The price increase is due to supply and demand, but supply plays a major role. When competing airlines can fill their planes at double the fare, they are not anxious to increase frequency. That will remain as long as labor problems at HKIA are not solved (it will take many months) and CX increases capacity extensively. CX is price leader in HK.
One problem is that HKers are quite willing to travel as much as before, but the leisure/business demand to travel to HK is weak.