Cathay Pacific tries newest Airbus wide-bodies to save fuel

Cathay Pacific Airways will soon start using Airbus Group’s most fuel-efficient plane as it tries to trim costs in the face of mounting competition. Cathay will receive 12 new A350 aircraft this year, with the first one due in May, CEO Ivan Chu said after a briefing Wednesday afternoon. Airbus says the A350 is 25% more efficient than comparable planes from its competitors, which will help Cathay trim expenses as it modernizes its fleet. Chu is trying to cut costs and increase productivity after Cathay’s passenger yields slid 11% last year amid heightened competition from mainland Chinese airlines. The Hong Kong-based carrier reported Wednesday that 2015 profit nearly doubled as crude oil’s decline to its lowest levels in more than a decade reduced costs and cheaper fares encouraged people to travel.<br/>“If you want to lower cost and be more efficient, new airplanes are what you want,” Cathay Chairman John Slosar said Wednesday. Cathay said Wednesday its net income rose 90.5% in 2015, primarily due to cheaper fuel -- though a loss of HK$8.74b on fuel hedges reduced those savings. The airline has hedged some of its fuel purchases into 2019 and will continue to hedge as a risk-management tool, Chu said. Its mainland Chinese competitors have stopped fuel hedging, allowing them to benefit fully from cheaper fuel.<br/>