"Hong Kong International Airport"

Hong Kong International Airport (HKIA) has demonstrated remarkable resilience and growth in its latest traffic statistics for June 2024.

The figures signal a continuing robust recovery from the pandemic-induced slump in the aviation sector.

The Airport Authority Hong Kong (AAHK) recently released figures that paint a picture of an airport rapidly regaining its status as a global aviation hub.

June 2024: A Month of Significant Growth

The month of June saw HKIA handle an impressive 4.3 million passengers, marking a substantial 29.1% increase compared to the same period in 2023.

This growth wasn’t limited to passenger traffic alone; flight movements also saw a significant uptick, rising by 32.3% to reach 29,590.

These figures underscore the airport’s successful navigation of the post-pandemic landscape and its ability to capitalize on the pent-up demand for air travel.

The recovery in passenger traffic was broad-based, with all segments experiencing noteworthy growth. Hong Kong residents, visitors, and transfer/transit passengers all contributed to the upward trend.

Particularly strong performance was observed in routes connecting to Southeast Asia, Mainland China, and Japan, highlighting the importance of these markets in HKIA’s recovery strategy.

Cargo Operations: Rebound Continues

While passenger numbers are rebounding, HKIA’s cargo operations have been a consistent bright spot.

The airport has maintained its position as the world’s busiest cargo hub. June marks the sixth consecutive month of double-digit year-on-year growth in cargo throughput for 2024.

This sustained performance in cargo handling underscores HKIA’s critical role in global supply chains.

Export cargo has been the primary driver of this growth, showing a robust 24.9% increase compared to June 2023.

Routes connecting North America, Europe, and Southeast Asia experienced a particularly pronounced surge in cargo traffic.

This reflects the strength of trade relationships with these regions and the ongoing importance of air freight in international commerce.

First Half of 2024: Setting the Stage for a Strong Year

The cumulative figures for the first six months of 2024 further reinforce the narrative of recovery:

• Passenger volume reached 25.3 million, a 52.8% increase year-on-year
• Flight movements totaled 174,745, up 47.1%
• Cargo traffic hit 2.4 million tonnes, representing a 17.9% growth

These half-year statistics neatly demonstrate the scale of the recovery. They also suggest that HKIA is on track to potentially surpass pre-pandemic levels in certain areas by the end of the year.

Optimism for Full Recovery

The momentum appears set to continue, with HKIA recording a new post-pandemic high of over 171,000 passengers on July 21, 2024.

This milestone, coupled with expectations of continued growth during the summer peak, signals a strong recovery trajectory for the airport.

This has led to the expectation that passenger traffic on peak days will fully recover to pre-pandemic levels by the end of 2024.

This projection speaks volumes about the airport’s operational readiness and the returning confidence in air travel. The airport has also proactively engaged in incentive schemes to further attract passenger and cargo operators.

Global Recognition: AFLAS Award

The airport was named “Best Global Airport” for the ninth consecutive year. This took place at the 2024 Asian Freight, Logistics and Supply Chain (AFLAS) Awards.

This recognition, based on nominations and votes from industry professionals, cements HKIA’s reputation as a leader in air freight services.

Cissy Chan, Executive Director, Commercial of AAHK, emphasized the airport’s strategic focus on enhancing cargo services and capabilities.

By leveraging HKIA’s extensive air network, the airport aims to reinforce its position as the premier cargo hub for the Greater Bay Area. It also positions itself nicely to maintain its global leadership in air freight.

Conclusion

HKIA has deftly navigated the post-pandemic aviation landscape through H1 2024. The June 2024 statistics and recent accolades paint a picture of an airport not just recovering, but thriving.

Passenger numbers are climbing, cargo operations booming, and industry recognition has reaffirmed its status. Hong Kong International Airport is well-positioned to meet the challenges and opportunities of the evolving global aviation sector.

The coming months will be crucial in determining whether this robust recovery can be sustained and translated into long-term growth. Current indicators suggest a promising future for one of the world’s leading aviation hubs.

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The Airport Authority Hong Kong (AAHK) has launched a new incentive scheme aimed at enhancing HKIA’s position as a leading international aviation hub.

The newly introduced Airport Network Development Programme will target passenger and cargo operatoions. It offers compelling incentives for airlines to expand their route networks and increase flight frequencies to and from Hong Kong.

This strategic move comes on the heels of the successful Early Bird Guaranteed Landing Charge Rebate Scheme, which concluded in March 2024.

After extensive consultations with both local and international airline representatives, AAHK rolled out the new programme in June 2024.  This furthers its focus on collaborative growth in the regional aviation sector.

New Route and Strategic Development Schemes

The Airport Network Development Programme comprises two key components:

New Route Scheme

1. Open to all passenger and cargo airlines
2. Offers financial incentives for launching new destinations connected to HKIA
3. Two-year incentive period for eligible routes
4. Available to both existing HKIA operators and new entrants

Strategic Development Scheme

1. Encourages airlines to align with AAHK’s strategic vision
2. Three-year financial incentives for new routes or increased frequencies to targeted regions
3. Special focus on promoting the HKIA Dongguan Logistics Park (HKIALP)

The programme’s application window extends from June 1, 2024, to December 31, 2027. This provides ample opportunity for airlines to participate and benefit from this initiative.

HKIA: A World-Class Aviation Hub

Hong Kong International Airport has long been recognized as one of the world’s busiest and most efficient airports. Some key facts about HKIA include:

• Opened in 1998, replacing the former Kai Tak Airport
• Serves as a major gateway to mainland China and other parts of Asia
• Renowned for its state-of-the-art facilities and passenger-friendly design
• Consistently ranked among the world’s best airports for service quality

The new Airport Network Development Programme aims to build on these strengths, further cementing HKIA’s status as a global aviation powerhouse.

Industry Response and Future Outlook

Vivian Cheung, Acting Chief Executive Officer of AAHK, emphasized the critical role of air network connectivity in maintaining HKIA’s competitive edge.

She stated, “While we are confident in HKIA’s long-term development, this new Programme encourages airlines to accelerate the launch of new routes and increase flight frequencies to Hong Kong.”

The initiative has already garnered positive feedback from airlines since its launch last month. AAHK continues to engage with existing operators and reaches out to potential new airlines to promote the programme’s benefits.

Supporting Promotional Activities

In addition to financial incentives, AAHK has committed to sponsoring airlines’ promotional activities for new route launches at HKIA.

This comprehensive support package demonstrates AAHK’s dedication to fostering growth and innovation in Hong Kong’s aviation sector.

Conclusion

The Airport Network Development Programme is the latest measure in HKIA’s strategy to enhance its global connectivity and competitiveness.

By proactively offering tailored incentives and fostering collaboration with airlines, AAHK is positioning Hong Kong to remain at the forefront of international aviation.

As the programme unfolds, industry observers will be keen to monitor its impact on route development, passenger numbers, and cargo volumes at HKIA.

The success of this initiative could serve as a model for other major airports seeking to boost their global presence in the post-pandemic era.

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Hong Kong International Airport (HKIA) witnessed a remarkable resurgence in 2023, with performance figures showing a robust recovery in both passenger numbers and flight movements.

According to the latest data released by Airport Authority Hong Kong (AAHK), the figures for December 2023 rose to new post-pandemic heights, capping off a year which witnessed the aviation sector’s rebound.

2023: A Year in Review

Passenger Numbers Reach 40 Million

The year 2023 saw HKIA handling an impressive 40 million passengers, a staggering 600% increase compared to the previous year.

This substantial surge indicates not only a recovery but a resurgence in air travel, demonstrating the resilience of the aviation industry amidst challenging times.

276,000 Flight Movements

Accompanying the surge in passenger numbers was a parallel increase in flight movements. In 2023, HKIA recorded 276,000 flight movements, a remarkable 100% surge compared to the previous year.

This surge in activity not only signifies a revival but also underscores the pivotal role HKIA continues to play as a global aviation hub.

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Cargo: 4.3 Million Tonnes Handled

While passenger numbers and flight movements took center stage, the cargo sector at HKIA also experienced positive growth.

Total cargo throughput witnessed an annual growth of 3.2%, reaching 4.3 million tonnes. This balanced growth in passenger and cargo traffic highlights the holistic recovery of HKIA as a multifaceted transport hub.

December Rebound

Passenger Volume Surges

December 2023 proved to be a pivotal month, with passenger volume reaching 4.3 million, a remarkable 1.7 times increase year on year.

The Christmas peak witnessed a recovery to 80% of the pre-pandemic passenger levels, signifying a festive rebound in air travel.

Flight Movements Exceed Expectations

Flight movements in December soared by 89%, reaching 30,000 and surpassing 80% of the pre-pandemic level.

This robust resurgence is a testament to the increasing confidence of travelers and the aviation industry’s ability to adapt and thrive in challenging circumstances.

Cargo: Record-Breaking Throughput

December’s festive cheer extended to the cargo sector, with throughput increasing by 19.3% year on year to 418,000 tonnes.

Notably, exports recorded an impressive 33.4% surge, emphasizing the global connectivity and trade importance of HKIA.

Trade Routes Reinvigorated

Overall, traffic to and from key trading regions such as North America, the Middle East, and Europe saw the most substantial increases in both passenger and cargo movements.

This resurgence in global connectivity further reaffirms HKIA’s position as a crucial player in international trade and travel.

Clear Skies Ahead

The positive trajectory observed in 2023 sets the stage for a promising future for HKIA.

With passenger traffic expected to fully recover to pre-pandemic levels by the end of 2024, the skies over Hong Kong are poised for a sustained and resilient ascent.

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Global logistics service provider UPS (NYSE: UPS) and the Hong Kong Airport Authority have entered into an agreement to develop a new hub at the Hong Kong International Airport.

 The proposed hub, located near the Hong Kong-Zhuhai-Macau Bridge will substantially elevate UPS’s service standards for customers and fortify its operations in Asia.

The Powerhouse Hub

Anticipated to be completed by 2028, the state-of-the-art hub will become the nerve center for UPS Hong Kong’s operations.

This expansive facility, covering 20,000 square meters, is meticulously designed for processing and sorting imports, exports, and transshipments across Europe, the U.S., and various parts of Asia.

Boasting direct access to aircraft, the hub is projected to handle an impressive annual capacity of nearly 1 million tons.

This development translates into enhanced connectivity for UPS and its global clientele, providing seamless access to Hong Kong, the Greater Bay Area, and the burgeoning Asia Pacific consumer market.

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Daryl Tay, President of UPS North Asia District, emphasizes the strategic importance, stating, “Hong Kong continues to be an engine of growth and a critical part of UPS’s global smart logistics network.”

Future-Ready Automation

A key highlight of the forthcoming hub is its complete automation. Powered by state-of-the-art sorting and scanning technology, the facility is set to revolutionize the logistics landscape in the region.

This commitment to cutting-edge technology aligns with UPS’s dedication to providing a reliable and efficient customer experience.

The emphasis on environment-friendly features further underlines UPS’s commitment to sustainability.

Forward-Thinking Investment

This substantial investment is a testament to UPS’s broader expansion plans, specifically geared towards supporting the growth of the Greater Bay Area.

By consolidating its operations and establishing this hub, UPS aims to optimize its existing infrastructure in Hong Kong, streamlining various smaller and separately located facilities.

‘White Glove’ Shipping Service

In addition to this groundbreaking initiative, UPS has been actively enhancing its network and facilities across Asia in recent years.

Notably, UPS Premier, a ‘white glove’ shipping service tailored for healthcare customers, has been launched in seven countries in Asia, including Hong Kong.

This specialized service addresses the unique logistics needs of healthcare providers, ensuring precision in the transportation of patient-critical, time-sensitive, and temperature-sensitive products.

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The Western Australian Government and Perth Airport have expressed their approval at Cathay Pacific’s announcement to add five additional weekly flights between Hong Kong and Perth.

Cathay Pacific will enact the route frequency increase from 28 October 2024.

This significant increase in service reflects the growing demand for travel between the two regions. It further highlights Perth’s continued popularity as a premier international tourist destination.

Strengthening Traditional Ties

John Carey, Acting Tourism Minister, sees this expansion as a clear sign of strengthening ties between Hong Kong and Western Australia.

He emphasizes the importance of securing additional direct flights in driving tourism, generating visitor spending, and creating jobs within the state’s tourism and hospitality sectors.

This expansion reflects the growing demand for travel between Hong Kong and Western Australia. This is driven by factors such as increased business opportunities and cultural exchange programs, as well as general leisure travel interest.

The additional flights will undoubtedly strengthen existing ties between the two regions, fostering collaboration and promoting mutual economic growth.

Perth Airport serves as the primary international gateway to Western Australia, a state renowned for its stunning natural beauty, vibrant cities, and unique wildlife.

Boosting Tourism in Western Australia

Western Australia boasts a diverse range of tourism experiences. It ranges from the pristine world-class beaches of Margaret River to the rugged outback beauty of the Kimberley.

The addition of five new weekly flights from Cathay Pacific will come as a further boon. It makes Perth a more accessible destination for travelers from Hong Kong and beyond.

This is expected to lead to a significant increase in visitor arrivals, injecting revenue into the local economy and creating new jobs within the tourism and hospitality sectors.

Tourists will have the opportunity to explore Perth’s vibrant cultural scene, indulge in its renowned food and wine offerings. Visitors are also attracted by the awe-inspiring natural wonders of the vast state of Western Australia.

Businesses and Trade

The increased flight capacity offered by Cathay Pacific isn’t just beneficial for leisure travelers.

Business professionals in Perth and Hong Kong will enjoy improved connectivity, facilitating trade and investment opportunities between the two regions.

The additional cargo capacity will also be a boon for Western Australian exporters. The service allows them to reach new markets in Asia and beyond with greater ease.

A Longstanding Partnership: Perth Airport and Cathay Pacific

Perth Airport’s longstanding partnership with Cathay Pacific, spanning over 50 years, is a testament to the mutual commitment of both entities to fostering international travel and economic development.

The increased service frequency from Cathay Pacific signifies a strong vote of confidence in Perth’s potential as a global destination.

This collaboration has traditionally supported a smooth and efficient travel experience for passengers flying between Perth and Hong Kong.

Looking Ahead

Cathay Pacific’s increased service to Perth marks a significant milestone for the city and the state of Western Australia.

This expansion strengthens travel links, boosts tourism, facilitates trade, and ultimately contributes to the economic prosperity of the region.

With its world-class airport, stunning natural beauty, and burgeoning tourism industry, Perth is well-positioned to continue its position as a major global destination.

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