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. Read more

Cathay sacks staff

May 23, 2017 by  
Filed under Aviation, News, North Asia

HONG KONG, 23 May 2017: Hong Kong’s flagship airline Cathay Pacific said, Monday, 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.

In March the company posted its first annual net loss in eight years, citing intense competition as lower cost airlines, particularly from mainland China, eat into its market share.

It pledged at the time to slash costs by 30% after its USD74 million net loss in 2016 reversed a USD773 million profit in the previous year. Read more

TUI bets on summer boost

May 15, 2017 by  
Filed under EUROPE, News, tour operators

FRANKFURT, 16 May 2017: German travel group TUI on Monday confirmed its sunny forecast for the full year, betting on strong summer business to outweigh a net loss in the “challenging” first half.

TUI is in the midst of a transformation into a package holiday provider, focussing on its own hotels and cruises after taking over British subsidiary TUI Travel in 2014.

TUI, which runs its business year from October to September, booked a net loss of 363 million euros (USD397 million) for the six months to March. Read more

CX posts first loss in eight years

March 16, 2017 by  
Filed under Aviation, News, North Asia

HONG KONG, 16 March 2017: Hong Kong’s troubled flagship airline Cathay Pacific on Wednesday posted its first annual loss since the height of the financial crisis as it was hit by “intense competition” and a drop in demand from business travellers.

The firm is struggling despite an expansion of international air travel in the region as lower-cost carriers, particularly from mainland China, eat into its market share.

Companies like China Eastern and China Southern Airlines are offering direct services to Europe and the United States from the mainland, while budget carriers like Spring Airlines offer regional routes, undermining Cathay’s once critical Hong Kong hub. Read more

Air Arabia reports loss

February 10, 2017 by  
Filed under Aviation, Middle east, News

DUBAI, 10 February 2017: Air Arabia, the Middle East’s largest low-cost airline, announced, Thursday, its first-ever quarterly loss, blaming challenging market conditions and overcapacity.

The UAE carrier reported a net loss of 33 million dirhams (USD9 million) in the last three months of 2016, while revenue dropped 15% to 814 million dirhams.

Earnings of the Sharjah-based carrier “were impacted by (a) continuous drop in yield margins as a result of the overcapacity deployed in the market and the slow growth environment in major economic hubs,” said Air Arabia chairman Sheikh Abdullah al-Thani. Read more