Cathay Pacific has acquired Hong Kong Express Airways in a deal valued at $628 million. The Hong Kong flag carrier purchased the airline from China-based HNA Group. Cathay said it would continue to operate Hong Kong Express as a separate brand, based on a low-cost airline model. One reason given for the acquisition was a lack of slots at Hong Kong International Airport, where space will be limited until an expansion is completed in 2024. The deal is expected to close by the end of the year but is subject to regulatory approval. Hong Kong Express currently operates a fleet of 24 Airbus A320 jets. It reported a loss of about $18 million in 2018, while Cathay Pacific recently reported it had returned to profitability for the first time in three years.