Hong Kong Express Reports Significant Losses Amid Challenges

Hong Kong Express, a subsidiary of Cathay Pacific, reported a net loss of 996 million HKD before financial expenses and taxes last year, marking a nearly fourfold increase in losses compared to the previous year. According to RTHK, CEO Lam Siu Po attributed the substantial loss to rumors of an earthquake in Japan, which impacted the airline's operations. Traditionally, Hong Kong Express relies heavily on its Japanese routes. Additionally, the airline introduced 12 new destinations last year, some of which require time to develop. Lam noted that flights to Japan and demand have returned to normal levels. The airline's performance in the first two months of this year has improved, and Lam expressed confidence that Hong Kong Express will achieve profitability. This optimism is based on improvements in several fundamental factors, including cost efficiency and aircraft utilization.