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The Cathay Pacific Group's 2017 operating loss ballooned to HK$1.45b (US$185m), as overcapacity and intense competition continued to put pressure on yields. The poor operating result is nearly triple the HK$525m loss from a year ago. Revenue rose 4.9% to HK$97.3b during the 12 months, boosted by robust cargo demand despite passenger revenue falling 0.8%. Passenger capacity rose 2.8% during the year reflecting the introduction of new routes and increased frequencies. Yield, however, fell 3.3% to HK52.3 cents as load factor slipped 0.1 point to 84.4%. Operating expenses jumped 6.7% to HK$99.6b with increases across the board. Fuel costs, which rose 11.3% after taking hedging losses into account, remains the group’s most significant cost. <br/>

Finnair has dropped hopes of taking part in industry consolidation because politicians oppose relinquishing state control and will instead look to Asia to expand alone, its CE said. The carrier, 55.8% govt owned, has for years urged lawmakers to scrap a clause obliging the state to hold a majority stake. Former minister for state-owned firms, Heidi Hautala, failed to win support in her push for change. The current center-right govt considered the idea but dropped it and has no plans to discuss it again, two govt sources said. Finnair CE Pekka Vauramo said any plan for a tie-up was "off our table at the moment" and said the airline, with annual sales of around US$3.2b, aimed to expand on its own with a focus on Asian routes. "We will go for our growth opportunities and define our future by ourselves," he said. <br/>