Cathay Pacific's first-half performance disappointing, CEO says

By Bloomberg News, July 19 2017
Cathay Pacific's first-half performance disappointing, CEO says

Cathay Pacific's operating environment remained challenging in the first half of the year, Chief Executive Officer Rupert Hogg said, dashing expectations of an early recovery for the carrier that’s cutting jobs following the first annual loss in eight years.

“We said that we expected the operating environment in 2017 to remain challenging,” Hogg said in a statement the premium airline sent to the stock exchange Tuesday.

“This has been the case. Our airline’s performance in the first half of 2017 continued to be disappointing.”

Cathay Pacific shares have rallied 23 percent this year as the airline embarked on a three-year transformation that included eliminating 600 jobs in the company’s biggest revamp in two decades.

Challenges at Hong Kong’s marquee airline and its rival Singapore Airlines show how some of Asia’s biggest airlines are faring amid intense competition from Chinese and Middle Eastern rivals, and a surge in capacity that is pummeling ticket prices.

Hogg said strong competition from other airlines is putting “intense and increasing pressure” on passenger yield, or the money an airline gets from carrying a passenger for a kilometer. The company’s annual passenger yield fell to the lowest level in seven years in 2016.

The carrier is scheduled to announce its first-half earnings mid-August.

Hogg took over as the airline’s chief in May, facing one of the toughest turnaround jobs in Asian commercial aviation. Once a dominant player in Asia’s premium air travel market with few serious rivals, Cathay Pacific has hit an air pocket, despite the booming travel demand in the region.

Cathay Pacific is expected to report a full-year loss of HK$1.44 billion (US$185 million) this year, according to the average estimate of 18 analysts compiled by Bloomberg.

Qantas - Qantas Frequent Flyer

07 May 2016

Total posts 18

CX has some culture problem as well. It is not Chinese, not English. Passengers have choices to go with others in much cheaper price. SQ has similar problem as well, attitude. Stop the attitude!

Air New Zealand - Airpoints

14 Jul 2017

Total posts 18

Completely agree.  I ditched CX for a flight  on China Southern from PVG to LAX via CAN for sub 3K AUD in J class on the 380.  Seat and service was wonderful. CX was over AUD7K.  

Emirates Airlines - Skywards

14 Feb 2014

Total posts 33

when you charge so much even for regional flights that's what you get.......empty seats!!

Cathay Pacific - The Marco Polo Club

20 Jul 2017

Total posts 1

Late last year traveling from HK TO MEL

Food poisoning on CX flight sick as... reported to the cabin crew (as vomiting) the crew was concerned to clean the area but not to ask me and not offered any assistance writing to CX IN HK to complain not any reply so far   Travel with CX for over 25 years their service have deteriorated in the last few years  
No wonder why choosing another airline it's the answer to my problem. 

Qantas - Qantas Frequent Flyer

09 May 2013

Total posts 138

i have experienced the best service and great travels with CX. I agree that their price is dearer and they have to handle competition more now which would lead to some adjustment of their offering vs price. Just like anything, you can always get something cheaper. I would like to see them do well. 

Qantas - Qantas Frequent Flyer

18 Feb 2015

Total posts 124

You will all swap back to premium flyers when one of these cheap Chinese airlines drops to the ground in flames.... there are more reasons than what you can see for higher prices.

Better trained Pilots 
Better trained Mechanics 
Better trained Cabin crew
Better maintenance of aircraft 

All this costs more money which in turn has to go on ticket prices.

Qantas - Qantas Frequent Flyer Platinum

07 Feb 2013

Total posts 548

Spot on, well said.

22 Mar 2013

Total posts 28

It seems the market doesn't agree with what you said. 

Qantas - Qantas Frequent Flyer

18 Feb 2015

Total posts 124

Wait for the flames...

Hi Guest, join in the discussion on Cathay Pacific's first-half performance disappointing, CEO says