Air China feeling the effects of Cathay Pacific’s travails
The financial turbulence being felt by Cathay Pacific Airways has filtered into Air China, which has come in with losses of its own way below market consensus for early 2017. The carrier’s net profit dropped 39.8% to CNY1.5b (US$72.8m) in Q1,which was in part blamed on its investment losses of CNY141.6m, the majority of which was from Cathay, of which it owns 29.99%. Cathay itself expectedly swung into loss of HK$575m ($73.8m) in 2016 and has projected just as turbulent times ahead this year. Cathay Pacific and Cathay Dragon carried a combined 2,851,661 passengers in March, 3.7% fewer than March last year. The carrier unveiled a 3-year transformation plan in January to revive its business, investing in technology and a fuel-efficient fleet to save costs, while redeploying staff. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-05-09/oneworld/air-china-feeling-the-effects-of-cathay-pacific2019s-travails
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Air China feeling the effects of Cathay Pacific’s travails
The financial turbulence being felt by Cathay Pacific Airways has filtered into Air China, which has come in with losses of its own way below market consensus for early 2017. The carrier’s net profit dropped 39.8% to CNY1.5b (US$72.8m) in Q1,which was in part blamed on its investment losses of CNY141.6m, the majority of which was from Cathay, of which it owns 29.99%. Cathay itself expectedly swung into loss of HK$575m ($73.8m) in 2016 and has projected just as turbulent times ahead this year. Cathay Pacific and Cathay Dragon carried a combined 2,851,661 passengers in March, 3.7% fewer than March last year. The carrier unveiled a 3-year transformation plan in January to revive its business, investing in technology and a fuel-efficient fleet to save costs, while redeploying staff. <br/>
