Core Viewpoint - Delta Airlines is set to launch a direct flight from Los Angeles to Hong Kong in June next year, marking its return to the Hong Kong market after eight years, amidst a strategic adjustment in its U.S.-China route layout [2][3]. Group 1: Market Context - The current U.S.-China direct flight capacity is limited, with only 100 weekly flights allowed under bilateral aviation agreements, significantly down from approximately 300 flights per week before the pandemic [4]. - The U.S. National Travel and Tourism Office predicts that the number of Chinese tourists visiting the U.S. will rebound to 2.7 million by 2025, nearing pre-pandemic levels [4]. - Delta aims to capture diverse passenger demand from the Greater Bay Area and extend its reach to Southeast Asia through the new route [5][10]. Group 2: Competitive Landscape - Delta will face competition from Cathay Pacific and United Airlines, which already operate multiple flights on the same route [11][12]. - United Airlines offers competitive pricing, with its economy class ticket priced at 6,884 RMB, while Cathay Pacific's lowest fare is over 1,500 RMB higher [13]. - Delta's entry into the market coincides with the 23rd FIFA World Cup, potentially boosting travel demand [17]. Group 3: Operational Insights - Delta Airlines is the largest international carrier at Los Angeles International Airport, operating over 160 outbound flights daily to more than 50 destinations [6]. - The new route is expected to facilitate connections for travelers from Shenzhen and other parts of Guangdong, who may prefer to transit through Hong Kong [6][10]. - The passenger load factor for the Hong Kong-Los Angeles route reached 79% in April, indicating strong demand [10]. Group 4: Future Outlook - Analysts express mixed views on Delta's ability to sustain the new route, citing previous failures in the Hong Kong market and the competitive barriers established by existing airlines [21]. - Delta's strategy includes leveraging its partnership with China Eastern Airlines for code-sharing on various domestic and international routes, enhancing operational efficiency [17]. - The market dynamics will evolve as Delta seeks to differentiate itself and capture a share of the growing travel demand between the U.S. and China [21].
无惧“亏损诅咒”,美国航司豪赌中国新航线