Cathay Pacific sees pressure on yields due to intense competition

Hong Kong's Cathay Pacific Airways said Thursday it expected yields, a proxy for airfares, to be under pressure in the coming months as performance in North America and Europe lags expectations due to intense competition. Long-haul destinations have performed below expectations, especially on the yield front, the airline said. Cathay said last month that its yields had come under "tremendous pressure" due to declining travel demand, especially to and from long-haul destinations. Meanwhile, geopolitical tensions continued to be a bane for the airline's cargo business, with freight volumes declining 9.1% in June from a year earlier and nearly 6% in the first six months of the year. The cargo business is unlikely to see a rebound in volumes in the coming months, Cathay Pacific Director Commercial and Cargo Ronald Lam said.<br/>