CHICAGO- Delta Air Lines (DL) is set to re-enter the Los Angeles (LAX) to Hong Kong (HKG) market, a route where United Airlines (UA) maintains a significant presence.
During United’s Q2 2025 financial results call, CEO Scott Kirby responded candidly to Delta’s new service, highlighting a fierce rivalry and expressing skepticism about Delta’s ability to operate profitably on this long-haul route.
United Airlines (UA) CEO Scott Kirby, referencing the new Delta Air Lines (DL) flights between Los Angeles (LAX) and Hong Kong (HKG), stated he feels “complimented” by Delta’s competitive move, yet doubts its financial viability given current market dynamics.
The route underscores intense competition on trans-Pacific flights as both carriers adjust their global strategies, OMAAT flagged.
Photo: Scott Kirby LinkedIn PageUnited CEO on Delta New Route
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.
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. This new connection expands Delta’s Asia-Pacific network from its Los Angeles hub.
In response, United Airlines—which operates twice-daily flights from both Los Angeles (LAX) and San Francisco (SFO) to Hong Kong (HKG)—has maintained a strong market share in these gateways.
Kirby, during the Q2 2025 earnings call, remarked that Delta’s move “isn’t a big issue” for United, pointing to the scale and strength of United’s Pacific network.
He went further, suggesting Delta’s new service may struggle financially given the highly competitive nature of West Coast–Hong Kong traffic, dominated by Cathay Pacific (CX), United (UA), and now Delta (DL).
Photo: Clément AlloingFinancial Performance and Strategic Focus
United’s Q2 2025 report showed a positive trend in Pacific revenue and yields, contrasting with Delta’s declining yields in Asian markets.
Delta increased its Asia capacity by 11% but experienced a 6% drop in yields and a 1% decrease in unit revenue.
Meanwhile, United expanded its Asia capacity by 6%, saw a 3% yield increase, and achieved a 9% uptick in unit revenue. This divergence highlights United’s advantage in established transpacific operations with stronger premium and loyalty revenues.
Despite the competitive pressure, Scott Kirby emphasized absolute profit growth as United’s priority, not simply outperforming Delta in margins.
He sees United’s diversified network and loyalty programs as “uncopyable” advantages over Delta, reinforcing the airline’s long-term outlook for sustainable returns instead of short-term victory in isolated markets.
Photo: Bill Abbott | FlickrRoute Viability and Industry Perspective
Transpacific long-haul routes are often unprofitable in early stages due to high fixed costs and evolving demand.
Industry sources note that airlines sometimes launch these flights to strengthen global networks rather than to secure immediate profit. Kirby’s remarks on Delta potentially “losing money” reflect broader trends in route economics, not merely a rivalry jab.
Delta’s 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.
However, United’s established frequencies, brand loyalty, and premium segmentation continue to underpin its resilience against new entrants on these high-risk international routes
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United CEO Kirby Focusing on Profit Instead of Beating Delta
The post ‘Delta Will Lose Money on New LAX-HKG Flight’, Predicts United CEO? appeared first on Aviation A2Z.
