oneworld

Weak results prompt strategy change at Cathay Pacific

Lower 1H 2016 revenue has turned Cathay Pacific’s sights towards the leisure market to better deal with business challenges expected for the rest of the year. Yongyut Lujintanon, the airline’s sales and marketing manager for Thailand and Myanmar, said corporate clients significantly dropped in the first half of the year due to global economic downturns. The period saw revenue fall 9.3% to HK$45.68b (US$5.8b), resulting in profits taking a 82% dive to HK$353m year-on-year. Yongyut said that while the proportion of leisure and business travellers were somewhat even previously, lower corporate demand means the airline needs to make up for the difference through the leisure market. Apart from pricing, the firm has invested in new technology, aircraft and services to meet demand of clients and to compete with rivals. <br/>