Delta Air Lines has made a formal comeback to Hong Kong, launching a daily direct flight to Los Angeles starting on Monday. Industry insiders point to Hong Kong’s economic strength, global free-port advantages, and exceptional logistics prowess as key catalysts behind Delta's strategic move.
“Hong Kong is the world’s number one air cargo market. Its free port capabilities make it unique across the world,” said Jeff Moomaw, vice-president for Asia Pacific at Delta Air Lines.
He added that the new service establishes a vital air-freight corridor between the Hong Kong SAR and the United States, significantly strengthening Delta Cargo’s transpacific network.
Beyond cargo operations, Moomaw noted that Hong Kong ranks as Asia’s second-largest corporate travel market. “The combination of strong cargo and corporate travel demand makes Hong Kong a perfect market for any airline,” he said.
According to Moomaw, the inaugural flight was fully sold out, with strong demand continuing through the entire summer season. This positive response has reinforced the airline’s confidence in the long-term potential of the Hong Kong market.
“Hong Kong is an incredible economic machine that has maintained steady growth and is expected to sustain this momentum far into the future. This was one of the decisive factors in our determination to serve this market again,” he said.
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This new nonstop service from Hong Kong to Los Angeles provides more than 30 convenient one-stop connections from Los Angeles International Airport. “Our focus right now is making sure that this flight is a success. As the route matures and we gain a clearer understanding of demand patterns, we will start to make other determinations, but for right now, we're focused on making sure that this flight is highly successful,” said Moomaw.
Driven by surging aviation fuel prices and geopolitical instability, the International Air Transport Association, which represents more than 370 airlines worldwide, has revised its global profit forecast downward. The association now expects the airline industry to generate a net profit of $23 billion this year, a sharp decline from its earlier projection of approximately $41 billion.
However, Ranjan Goswami, Delta Air Lines' chief marketing and product officer, said that the first quarter of this year was one of Delta’s strongest quarters on record.
“Sixty percent of Delta's revenue is from diverse revenue streams,” Goswami said. “Even though we have 20 percent of the seats of the US market, we believe our profitability this year will be between 50 and 60 percent of the entire industry,” he added.
