Lower fuel prices helped Cathay Pacific notch a profit for H1 this year, but the airline reported the US-China trade war had knocked its cargo business and that protests in the city had affected inbound travel in July. The airline recorded a HK$1.35bn ($172.2m) profit in the six months to June, up from a loss of HK$263m a year earlier. The results for H1 come after the company returned to profit in 2018 following two consecutive years of losses. Revenue nudged up 0.9% to HK$53.5b. Cargo revenue fell during the period, dropping 11.4%, compared to a year earlier to HK$11.5b, which chairman John Slosar said was “due in part to US-China trade tensions”. Cathay said it expected to achieve better results in H2, in line with the normal annual pattern for the airline, despite the headwinds. “Geopolitical and trade tensions are expected to continue to affect the global economy and, in turn, demand for air travel and air freight,” Slosar cautioned. Protests over the past two months in Hong Kong sparked by a controversial government extradition bill had reduced inbound traffic in July and hit bookings, the statement said. The airline was forced to cancel flights on Monday amid a general strike in Hong Kong as anti-government demonstrators organised to highlight the breadth of discontent among the city’s workers. Its shares closed 4.2% lower on Monday at a 9-month low in response to the disruption. Passenger yield per kilometre, a key metric for the industry, slipped 0.9%. Fuel costs were down 7.7% compared to a year earlier after accounting for fuel hedging.<br/>
oneworld
BA said it had resolved an IT failure at three London airports that caused dozens of flights to be cancelled or delayed on Wednesday. The airline apologised to passengers caught up in the disruption at Heathrow, Gatwick and London City, and said nine hours after the trouble began that flights were returning to normal. However, BA said there may be some “knock-on operational disruption” and advised passengers to check its website for the latest flight information before travelling. BA did not say how many flights had been cancelled at Heathrow or Gatwick, but no flights were cancelled from London City. The disruption was caused following issues that forced the airline to use a manual back-up system at check-in to keep its flights operating. The BBC reported that at least 117 BA flights had been cancelled at Heathrow and 10 at Gatwick, while 200 had been delayed across the three airports. Even though not all short-haul flights were affected, passengers flying short haul from all three airports were offered the opportunity to rebook to another day, while customers whose flights had been cancelled were offered a refund or other rebooking options.<br/>
American Airlines will be the first “founding partner” of the LA Stadium and Entertainment District at Hollywood Park, a 2.5-acre space that also serves as the main entrance to the stadium home of the Los Angeles Chargers and Los Angeles Rams. The airline shared the news on social media in a tweet, “Let the games begin! #BestinLAX #Rams #Chargers.” American will reportedly pay $90m over 10 years to sponsor the plaza, formerly known as Champions Plaza, unveiled as American Airlines Plaza on Tuesday. The airline will also be the official airline of the Chargers and Rams. The Rams became official partners with American three years ago. “For decades, Los Angeles has been one of American’s most important markets and has played a major role in connecting Southern California to the rest of the world,” said American Airlines President Robert Isom. The stadium, financed by Los Angeles Rams owner Stan Kroenke on the former site of the Hollywood Park horse racing track, still doesn’t have an official name but is reported to be 75% complete and is set to open in July 2020. The stadium will host the 2022 Super Bowl.<br/>
American Airlines and Southwest both unveiled new corporate travel initiatives Aug. 5, highlighting the increased competition among airlines to attract lucrative business travellers. Southwest’s expanded corporate travel program—renamed Southwest Business—will enable corporate travel managers to book, change and modify reservations through Travelport’s global distribution systems (GDS) and the Amadeus Travel Platform. The company predicts the expanded booking capabilities will be operational by mid-2020, and projects the initiative will produce $10-$20m incremental improvements in pre-tax results by H2 2020. Southwest is also partnering with the Airlines Reporting Corp. to develop industry-standard processes to handle the expanded reporting and settlement capabilities of tickets booked through Travelport and Amadeus channels. “For nearly 50 years, we’ve been a business traveller’s airline with high-frequency travel options and low fares. Today’s announcement evolves that philosophy even further by offering travel managers and business travelers new capabilities when booking Southwest travel in the channel of their choice,” Southwest president Tom Nealon said. American, meanwhile, also highlighted enhancements in its offerings for corporate travelers, which will also apply to its Atlantic joint business partners British Airways, Finnair and Iberia. <br/>