The Hong Kong based Cathay Pacific has reported a net loss of over 2 billion Hong Kong dollars, that over $268 US dollars for the first half of this year alone.
For the first six months of last year the airline made a profit of HKD$353, compared to this years loss and the airline has confirmed it expects the losses to continue for the full year.
The Hong Kong flag carrier cites issues such as the price of fuel, hedging losses and greatly increased competition on a number of markets for the steep losses. Also a number of other 'one off' item affected the half year figures including a fine from the European Commission over a cargo price collusions case and a dilution of shares in Air China from 20.1% to 18.1%.
Cathay Pacific do however to stem the flow of losses through further implementation of the stringent transformation plan to take place over the next three years. This cost saving plan will see a corporate restructuring, a 30 percent cut in staffing at their airlines headquarters, increased cargo operations and other measures not yet announced
Cathay also hopes that the introduction of a more economical aircraft to its fleet will have an impact on operating costs. The airline took delivery of another new Airbus A350-900 recently, with the rest of the order being delivered before year end from the European manufacturer.
. You may reproduce this article free of charge on condition you include a credit and a link back to this site. Thank you.
