CHICAGO- United Airlines (UA) CEO Scott Kirby has cast doubt on the profitability of Delta Air Lines’ (DL) new Hong Kong (HKG) route from Los Angeles (LAX). Speaking during United’s Q2 2025 earnings call, Kirby suggested Delta may struggle financially on the trans-Pacific route.
Delta recently resumed service to Hong Kong (HKG) from Los Angeles (LAX), reentering a highly competitive Asia-Pacific market long dominated by United at major West Coast gateways, including San Francisco (SFO).
Photo: Scott Kirby LinkedIn PageUnited CEO Doubts Delta’s Profit
During United Airlines’ (UA) Q2 2025 earnings call, CEO Scott Kirby addressed questions regarding Delta Air Lines’ (DL) new long-haul routes, specifically LAX to HKG and LAX to Chicago O’Hare (ORD). United maintains a strong presence in both markets, making Delta’s entry notable.
Kirby downplayed any concerns, remarking that with United operating over 6,000 flights daily, a couple of new Delta routes pose no threat.
Kirby further suggested that Delta may incur financial losses on its new Hong Kong service, implying that the move was more reactive than strategic.
According to OMAAT, the CEO even described Delta’s launch as a form of flattery—hinting it was a response to United’s success across the Pacific.
United Airlines operates multiple daily nonstops to Hong Kong, particularly from LAX and its primary Pacific hub in San Francisco (SFO). With a robust Asia-Pacific network, United has seen improved performance in the region, contrasting Delta’s recent results.
Photo: Clément AlloingDelta’s Hong Kong Route
Delta’s decision to restart service to Hong Kong after an eight-year hiatus marks a significant shift in its Asia strategy.
However, the choice of Los Angeles as a launch point is somewhat surprising. LAX is not Delta’s strongest hub for domestic connectivity and faces stiff competition from both United and Cathay Pacific on the route.
In contrast, Seattle (SEA), where Delta has invested heavily, might have provided stronger feeder traffic. Still, LAX offers West Coast positioning essential for transpacific operations, even if it’s a tougher market to penetrate.
Delta’s reliance on its joint venture partner, Korean Air, at Seoul Incheon (ICN) adds complexity to its direct expansion in other Asian cities like Hong Kong.
Photo: Next Trip Network | FlickrQ2 2025 Performance
Financial results for Q2 2025 reveal diverging trends between the two carriers’ Asia operations:
- Delta (DL): Increased capacity to Asia by 11%, but experienced a 6% drop in yields and a 1% decrease in unit revenue.
- United (UA): Increased capacity to Asia by 6%, while achieving a 3% rise in yields and a 9% increase in unit revenue.
While performance data spans the broader Pacific region, not just Hong Kong, it still highlights United’s stronger position in long-haul Asia travel.
United’s existing frequency and network depth in Asia give it an advantage Delta will need time and strong execution to match.
Even if Delta’s new route does lose money initially, such outcomes are not unusual in the airline industry. Long-haul routes often operate at a loss during early months or even years, with strategic value often outweighing short-term profitability.
Airlines frequently launch new international routes to strengthen brand visibility, loyalty programs, and competitive parity.
Whether Delta can sustain the Hong Kong route depends on factors such as cargo demand, yield management, and competitive positioning. The true test will be Delta’s ability to optimize its network to make the economics viable long-term.
Photo: United AirlinesBottom Line
United CEO Scott Kirby remains confident in his airline’s Asia-Pacific dominance and views Delta’s reentry into the Hong Kong market as validation of United’s success.
He predicts Delta will struggle financially on the LAX–HKG route, underscoring United’s advantage in Pacific operations.
While the ultimate outcome remains uncertain, the competitive tension between the two legacy carriers continues to intensify.
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