The Hong Kong Air Transport Licensing Authority (ATLA) has ordered Hong Kong Airlines (HX, Hong Kong International) to "take immediate and concrete steps with a view to effectively improving the financial situation shortly".

The authority said in a press release that it had been closely monitoring Hong Kong Airlines' standing over a long period of time, and had repeatedly asked it to submit financial improvement plans. Having analysed the information submitted recently, as well as the carrier's finances, the ATLA resolved that the situation continues to be "a matter of concern" with little improvement seen in recent months.

The regulator said that it "will consider taking appropriate action in accordance with the regulations" if Hong Kong Airlines does not immediately take effective action to improve its financial standing. The authority has the power to suspend the air services licence of any airline it deems unfit to continue operating.

While HNA Group-backed Hong Kong Airlines' has been struggling financially for months, the recent wave of protests in Hong Kong has increased its woes due to lower demand and a slump in future bookings. In September, the airline announced a raft of wage cuts and obligatory non-paid leaves.

Hong Kong Airlines does not publish its financial reports but Reuters has reported that it lost HKD3 billion Hong Kong dollars (USD383 million) in 2018.

Following the takeover of HK Express (UO, Hong Kong International) by Cathay Pacific (CX, Hong Kong International), Hong Kong Airlines remains the sole scheduled carrier in Hong Kong independent of the flag carrier. According to the ch-aviation fleets module, it currently operates twelve A320-200s, eleven A330-200s, thirteen A330-300s, and six A350-900s.