Cathay Pacific 1H losses deepen on competition, fuel costs
Cathay Pacific has plunged further into the red for the first half of 2017, and is pinning its hopes on a transformation plan to help counter surging competition. The carrier reported a net loss of HKD2.1b (US$268.2m) for the 6 months through June 30, a dramatic reversal from a HKD353m net profit in the same period last year. The prospect of a full-year loss appears likely, which would be Cathay’s second in a row. The airline’s 2016 full-year net loss of HKD575m was its first since 2008. Cathay’s biggest problem is increasing competition in many of its markets, particularly from mainland China’s major airlines. However, rising fuel prices are also adding to Cathay’s headaches. Fuel costs—including lower hedging losses—rose by HKD1.7b, or 12.7%, in the first half. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-08-17/oneworld/cathay-pacific-1h-losses-deepen-on-competition-fuel-costs
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Cathay Pacific 1H losses deepen on competition, fuel costs
Cathay Pacific has plunged further into the red for the first half of 2017, and is pinning its hopes on a transformation plan to help counter surging competition. The carrier reported a net loss of HKD2.1b (US$268.2m) for the 6 months through June 30, a dramatic reversal from a HKD353m net profit in the same period last year. The prospect of a full-year loss appears likely, which would be Cathay’s second in a row. The airline’s 2016 full-year net loss of HKD575m was its first since 2008. Cathay’s biggest problem is increasing competition in many of its markets, particularly from mainland China’s major airlines. However, rising fuel prices are also adding to Cathay’s headaches. Fuel costs—including lower hedging losses—rose by HKD1.7b, or 12.7%, in the first half. <br/>
