{"id":103841,"date":"2025-07-20T04:00:00","date_gmt":"2025-07-19T22:30:00","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=103841"},"modified":"2025-07-20T02:37:09","modified_gmt":"2025-07-19T21:07:09","slug":"delta-will-lose-money-on-new-lax-hkg-flight-says-united-ceo","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2025\/07\/20\/delta-will-lose-money-on-new-lax-hkg-flight-says-united-ceo\/","title":{"rendered":"‘Delta Will Lose Money on New LAX-HKG Flight’, Predicts United CEO?"},"content":{"rendered":"\n

CHICAGO-<\/strong> Delta Air Lines (DL)<\/a> is set to re-enter the Los Angeles (LAX) to Hong Kong (HKG) market, a route where United Airlines (UA) maintains a significant presence.<\/p>\n\n\n\n

During United\u2019s Q2 2025 financial results call, CEO Scott Kirby responded candidly to Delta\u2019s new service, highlighting a fierce rivalry and expressing skepticism about Delta\u2019s ability to operate profitably on this long-haul route.<\/p>\n\n\n\n

United Airlines (UA)<\/a> CEO Scott Kirby, referencing the new Delta Air Lines (DL) flights between Los Angeles (LAX) and Hong Kong (HKG), stated he feels \u201ccomplimented\u201d by Delta\u2019s competitive move, yet doubts its financial viability given current market dynamics.<\/p>\n\n\n\n

The route underscores intense competition on trans-Pacific flights as both carriers adjust their global strategies, OMAAT<\/a> flagged.<\/p>\n\n\n\n

\"Delta
Photo: Scott Kirby LinkedIn Page<\/figcaption><\/figure>\n\n\n\n

United CEO on Delta New Route<\/h2>\n\n\n\n

Delta Air Lines announced plans to launch daily nonstop service from Los Angeles International Airport (LAX) to Hong Kong International Airport (HKG), starting June 6, 2026, using Airbus A350-900 aircraft.<\/p>\n\n\n\n

This route returns Delta to Hong Kong after an eight-year absence, as the airline last operated its Hong Kong service from Seattle (SEA) until 2018.\u00a0This new connection expands Delta\u2019s Asia-Pacific network from its Los Angeles hub.<\/p>\n\n\n\n

In response, United Airlines\u2014which operates twice-daily flights from both Los Angeles (LAX) and San Francisco (SFO) to Hong Kong (HKG)\u2014has maintained a strong market share in these gateways.<\/p>\n\n\n\n

Kirby, during the Q2 2025 earnings call, remarked that Delta\u2019s move \u201cisn\u2019t a big issue\u201d for United, pointing to the scale and strength of United\u2019s Pacific network.<\/p>\n\n\n\n

He went further, suggesting Delta\u2019s new service may struggle financially given the highly competitive nature of West Coast\u2013Hong Kong traffic, dominated by Cathay Pacific (CX), United (UA), and now Delta (DL).<\/p>\n\n\n\n

\"Delta
Photo: Cl\u00e9ment Alloing<\/figcaption><\/figure>\n\n\n\n

Financial Performance and Strategic Focus<\/h2>\n\n\n\n

United\u2019s Q2 2025 report showed a positive trend in Pacific revenue and yields, contrasting with Delta\u2019s declining yields in Asian markets.<\/p>\n\n\n\n

Delta increased its Asia capacity by 11% but experienced a 6% drop in yields and a 1% decrease in unit revenue.<\/p>\n\n\n\n

Meanwhile, United expanded its Asia capacity by 6%, saw a 3% yield increase, and achieved a 9% uptick in unit revenue.\u00a0This divergence highlights United\u2019s advantage in established transpacific operations with stronger premium and loyalty revenues.<\/p>\n\n\n\n

Despite the competitive pressure, Scott Kirby emphasized absolute profit growth as United\u2019s priority, not simply outperforming Delta in margins.<\/p>\n\n\n\n

He sees United\u2019s diversified network and loyalty programs as \u201cuncopyable\u201d advantages over Delta, reinforcing the airline\u2019s long-term outlook for sustainable returns instead of short-term victory in isolated markets.<\/p>\n\n\n\n

\"Delta
Photo: Bill Abbott | Flickr<\/figcaption><\/figure>\n\n\n\n

Route Viability and Industry Perspective<\/h2>\n\n\n\n

Transpacific long-haul routes are often unprofitable in early stages due to high fixed costs and evolving demand.<\/p>\n\n\n\n

Industry sources note that airlines sometimes launch these flights to strengthen global networks rather than to secure immediate profit.\u00a0Kirby\u2019s remarks on Delta potentially \u201closing money\u201d reflect broader trends in route economics, not merely a rivalry jab.<\/p>\n\n\n\n

Delta\u2019s new nonstop Hong Kong service complements its joint venture with Korean Air (KE) and aims to deliver more direct options from the U.S. West Coast.<\/p>\n\n\n\n

However, United\u2019s established frequencies, brand loyalty, and premium segmentation continue to underpin its resilience against new entrants on these high-risk international routes<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on\u00a0Telegram Group\u00a0<\/a>for the Latest Aviation Updates. Subsequently, follow us on\u00a0Google News<\/a><\/p>\n\n\n\n

\n
United CEO Kirby Focusing on Profit Instead of Beating Delta<\/a><\/blockquote>