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            september 17, 2019

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Indiaexportnews.com

Cathay Pacific forecast to face estimated loss of US$357m in 2017

  14.03.2018    

Cathay Pacific Airways' cargo business is fortunately booming on the back of ecommerce and a strong global economy, while its passenger business has been hit hard by competition from budget airlines, resulting in a forecast 2017 loss of HK$2.8 billion (US$357 million).
Hong Kong's flag carrier carried more freight at higher prices and added more cargo flights last year. The expansion came as earnings from air tickets fell as the company cut prices to keep up with competition from budget airlines, reports SCMP.
"We have not seen such a strong air cargo market since 2010," said chief executive of transport research firm Crucial Perspective Corrine Png. "Cathay's continued investment in its cargo business in recent years, while most of the Asian airlines downsized, is paying off."
The airline recorded a HK$2.05 billion deficit in the first half of 2017, placing it on course for its first back-to-back losses in its 71-year history after it shed HK$575 million in 2016.
Last year was forecast by analysts to be the worst for Cathay as it executed a major restructuring of the business which has so far led to 600 job cuts. The changes were aimed at saving HK$4 billion.
Bad bets on fuel hedging, which have been a major factor pushing Cathay into the red, are expected to continue to impact the airline. Staff costs are expected to shrink after the restructuring. More cuts are likely to follow, as overseas roles are reviewed.



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