Cathay's operating loss nearly triples in 2017
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/>
https://portal.staralliance.com/cms/news/hot-topics/2018-03-15/oneworld/cathays-operating-loss-nearly-triples-in-2017
https://portal.staralliance.com/cms/logo.png
Cathay's operating loss nearly triples in 2017
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/>
