It was inspiring to hear Ronald Lam, CEO of the Cathay Group, share how Cathay, the grand dame of Hong Kong aviation, navigated the turbulent pandemic years that irrevocably changed the industry.
During the “CEO 123 Tell Me More” fireside chat on 11 December, Lam recounted how the pandemic dealt a severe blow to the city’s aviation sector, with strict quarantine measures keeping cabin crew grounded and planes idle. “Our destiny was no longer in our hands,” he reflected. “We could run only 5% of commercial flights while maintaining cargo operations to deliver vaccines and medical supplies.”
Now, five years after Covid-19 first emerged, Cathay Pacific and HK Express are on track to return to 100% capacity in January 2025. “It took two whole years to rebuild,” Lam noted, highlighting their remarkable turnaround compared to other similarly affected airlines.
He expressed gratitude to the Government for its support through a HK$19.5 billion investment, which was fully repaid, including an additional HK$4 billion in interest. Lam humorously recalled Financial Secretary Paul Chan’s remark that it was a good deal for the Government.
Since then, Cathay has made substantial efforts to solidify its market leadership. Last year, the company announced an ambitious HK$100 billion investment over the next seven years, which includes fleet expansion, new cabin products and refurbishments of its renowned airport lounges. In 2023, Cathay recruited over 5,000 staff; that number rose to 7,000 in 2024, marking unprecedented large-scale hiring with staff training extended to the Middle East and other regions.
Lam observed that the pandemic didn’t dampen long-term travel trends. While “revenge travel” increased leisure trips, corporate travel quickly stabilized. As a result of those challenging years, more customers are now opting to upgrade to premium economy and business class, reflecting a growing appetite for quality services and experiential travel.
Lam expressed immense pride in his team and Cathay’s resilient spirit, emphasizing the commitment to becoming an industry leader by focusing on two key areas: digitalization and sustainability. Over the past five years, the company has proactively fostered a digital-first culture and enhanced its capabilities.
“We assess our digital maturity constantly,” Lam explained, detailing efforts to modernize the IT landscape, tighten cybersecurity measures, reorganize data hubs, and embrace artificial intelligence for greater efficiency and impact. He highlighted that, as Cathay marks its 80th anniversary next year, it was one of the first companies to adopt Microsoft CoPilot for tasks ranging from email drafting to complex modelling operations for Hong Kong’s three-runway system.
He said the runway expansion would enhance efficiency and bolster Hong Kong’s competitive edge in the region, especially the Greater Bay Area, whose nine cities, along with Hong Kong and Macau, constitute a formidable engine of economic growth. Furthermore, enhancing Hong Kong’s air transport dovetails with Beijing’s vision for the city to be a major hub and connector within the country and between the Mainland and the world.
Lam acknowledged that decarbonization in aviation poses significant challenges, particularly for commercial flights. He stressed that switching to sustainable aviation fuel (SAF) – an alternative fuel made from non-petroleum feedstocks – represents a practical path to reducing emissions. Cathay aims to increase SAF to 10% of total fuel consumption by 2030, a crucial step towards a greener future.
He emphasized that broader SAF adoption will require the involvement and support of more stakeholders and authorities. In the 2024 Policy Address, the Chief Executive underscored support for SAF development, with a usage target to be established by the end of 2025.
Discussing his leadership strategy, Lam outlined a two-pronged approach focused on the Cathay brand – world-facing – and the internal culture, highlighting that both must be balanced for success and growth. He noted the importance of good storytelling in building the brand’s image, which reflects the company’s substance and values. This mirrors Hong Kong’s need to amplify its narrative to reinforce its status as a premier global aviation hub and a vibrant destination for business and leisure.