Cathay Pacific Airways Ltd. $0293.HK is facing new operational and pricing challenges at its low-cost subsidiary, HK Express, due to a steepening decline in airfares across regional routes. The pressure comes as intensified competition follows the opening of Hong Kong International Airport's third runway in November 2024, enabling a surge in available flight slots.

The International Air Transport Association (IATA) announced on Sunday that sustainable aviation fuel (SAF) production is expected to double in 2025, reaching 2 million tonnes. This volume will represent approximately 0.7% of total jet fuel consumption by airlines globally. Despite this projected growth, IATA continues to warn that the pace of SAF adoption remains insufficient for airlines to meet ambitious environmental and sustainability targets.