Cathay suffers massive loss

August 17, 2017 by  
Filed under Aviation, China, News

HONG KONG, 17 August 2017: Cathay Pacific on Wednesday reported a massive net loss of HKD2.05 billion (USD262.07 million) for the first half of the year as the airline struggled with intense competition from rivals.

The results, which were far worse than analysts predicted, came after Cathay saw its first annual loss in eight years in 2016, as lower cost Chinese carriers eat into its market share.

Chairman John Slosar described the results as “disappointing” to reporters.

Bloomberg analysts had forecast a loss of HKD1.2 billion (USD153 million).

Slosar said competition was the “most significant” factor in a statement to the Hong Kong exchange.

Higher fuel prices, a strong Hong Kong dollar and rising aircraft maintenance costs also cost Cathay, he said, as did fines from the European Commission over the airline’s cargo surcharges.

Last year’s annual loss prompted a management shake-up and promises to slash staff costs by 30%.

Current CEO Rupert Hogg took over in May, replacing Ivan Chu, who had been in the job for three years.

Cathay said in May it would cut 600 staff including a quarter of its management, as part of its biggest shakeup in two decades to repair its bottom line.

© Agence France-Presse

Comments

One Response to “Cathay suffers massive loss”
  1. H. Lee says:

    Cathay Pacific remains one of the best airlines in the world but the subsidised Gulf carriers Emirates, Etihad and Qatar, not to mention the state airlines of China, don’t play on the same field. Playing it by the book has always been Cathay’s strategy, but when you take a knife to a gun fight you always lose. The Swire boys still bring the last bit of class to the airline industry. May they find a way to survive.