Cathay Pacific losses skyrocket

Airline posts 681% increased first-half loss
Losses are deepening at Cathay Pacific, which posted a 681% bigger first-half loss, blaming intense competition and high fuel costs.
The Hong Kong carrier’s loss of HKD$2.05 billion (€223 million) for the six months to the end of June came on the back of a 4% dip in passenger revenue, with competition pushing down fares and yield falling 5.2%.
Costs were up by as much as 33.4%, to HKD$2.87 billion, with fuel prices rising by 31.5%. Fuel now accounts for more than 30% of the airline’s total operating costs.
“We are addressing the industry challenges through our corporate transformation and by expanding our route network, increasing frequencies on our most popular routes and buying more fuel-efficient aircraft,” chairman John Slosar said.
Looking forward, he added: “We do not expect the operating environment in the second half of 2017 to improve materially. In particular, the passenger business will continue to be affected by strong competition from other airlines and our results are expected to be adversely affected by higher fuel prices and our fuel hedging positions.”