Shares in Cathay Pacific opened 7.4% higher Wednesday in a relief rally after the Hong Kong airport reopened and the airline and its top shareholder condemned protests and vowed to follow China’s aviation regulations. The share price jump came after Cathay’s shares tumbled to a 10-year-low earlier in the week following the Chinese aviation regulator’s demand that it suspend personnel who engaged in or supported protests in Hong Kong from staffing flights into its airspace. Cathay and top shareholder and manager Swire Pacific Ltd placed advertisements on Wednesday in the Hong Kong Economic Journal in support of the Hong Kong government and its efforts to restore law and order. “We condemn all illegal activities and violent behaviour, which seriously undermine the fundamental principle of ‘One Country, Two Systems’ as enshrined in the Basic Law,” Swire Pacific said Tuesday. Cathay has emerged as the highest-profile corporate target as Beijing looks to quell protests in the territory that have gone on for 10 straight weeks.<br/>
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Cathay Pacific Airways said it had suspended with immediate effect Tuesday a second officer operating flight CX216 for misuse of company information, and had also commenced internal disciplinary proceedings. The flight was on Monday, it said. The airline got caught in the tussle between Beijing and pro-democracy groups in the Asian financial hub on Friday after China’s civil aviation regulator demanded the airline suspend personnel who engaged in or supported illegal protests in Hong Kong from staffing flights into its airspace. The airline over the weekend moved to comply with the demand from the Civil Aviation Administration of China (CAAC), suspending a pilot arrested during anti-government protests in Hong Kong and firing two airport employees citing misconduct. <br/>
The ground crew for International Airlines Group’s Iberia called on Tuesday strikes for the end of August at Barcelona’s El Prat International Airport, Spanish trade union UGT said. Strikes will take place on August 24, 25, 30 and 31 and were called after negotiations with the airline broke down, the union added. Iberia’s ground crew walked out in similar action in July after announcing a strike earlier that month. Barcelona’s El Prat is Spain’s second largest airport after Madrid Barajas and handles increased traffic in summer during the peak tourist season.<br/>
Chile’s LATAM Airlines Group posted a narrower loss of $63m in Q2, boosted by growing revenue in Brazil but dragged down by a recession in Argentina. The loss was a significant reduction compared to the same period last year, when it posted a $206m loss, at the time dragged down by a weak currency in Brazil and a truck drivers strike. The domestic air travel market in Brazil became more concentrated in the quarter after Avianca Brasil ceased operations in late May following a bankruptcy filing. This has left Brazil with just three major airlines competing for domestic flights. LATAM was widely expected to benefit from Avianca Brasil’s demise. Its revenue in Brazil grew almost 20% to $878m between April and June, compared to a year earlier. Still, LATAM’s results were negatively affected by a financial crisis in Argentina that keeps dragging on. Revenues there almost halved to $135m in the quarter, compared to $260m a year ago. LATAM and its regional rivals have also been affected by weak currencies in both Brazil and Argentina.<br/>
Police have arrested 58 airline catering workers for blocking intersections near American Airlines' headquarters during a protest over low pay. The protest Tuesday was organized by Unite Here, which represents 11,000 workers at the catering company LSG Sky Chefs. The union says one in four workers who provide food for American Airlines flights earns less than $12 per hour. The union is pressuring American, Delta and United to pay more to catering companies so they can improve pay and benefits. American says it's not part of the negotiations, but it's confident Sky Chefs and the union will reach an agreement with better terms for employees. A Fort Worth police spokesman says the people arrested were fined $274 each for violating a city code against obstructing streets and sidewalks.<br/>