News Content
Cathay Pacific sees first annual loss since financial crisis in 2008
HONG Kong flag carrier Cathay Pacific has reported a net annual loss of HKD575 million (US$74 million) last year, down 110 per cent from the HK$6 billion net gain in 2015.
The airline's revenue in 2016 fell 9.4 per cent from HKD102 billion in 2015 to HKD$93 billion.
The carrier's cargo revenue in 2016 was HKD20 billion, a decrease of 13.2 per cent compared to the previous year. The cargo capacity of Cathay Pacific and Cathay Dragon increased by 0.6 percent and the load factor increased by 0.2 percentage points, to 64.4 per cent. Tonnage totalled 1.85 million tonnes, an increase of 3.1 per cent.
"The market was very weak in the first quarter. Tonnage recovered from the second quarter, becoming seasonally strong in the fourth quarter. Yield fell by 16.3 per cent to HKD1.59, reflecting strong competition, overcapacity and the suspension of Hong Kong fuel surcharges.
"Demand on European routes was weak. Demand on transpacific routes grew slightly in the second half of the year. We managed freighter capacity in line with demand and carried a higher proportion of cargo in the bellies of our passenger aircraft," the airline said in a statement.
On the passenger side, revenue amounted to HK$67 billion, a decrease of 6.4 per cent from 2015. Capacity increased 2.4 per cent while the load factor decreased by 1.2 percentage points to 84.5 per cent. Yield fell by 9.2 per cent to HK54.1 cents.
"The operating environment for the Group's core airline business was difficult in 2016," the airline said pointing out "intense and increasing competition with other airlines", particularly those from China that were operating more direct flights between Mainland China and international destinations. There was also increased competition from low cost carriers.
Looking ahead, Cathay Pacific chairman John Slosar said: "We expect the operating environment in 2017 to remain challenging. Strong competition from other airlines and the adverse effect of the strength of the Hong Kong dollar are expected to continue to put pressure on yield. The cargo market got off to a good start, but overcapacity is expected to persist.
"Despite the challenges with which we are faced, we still expect our business to grow in the long-term. Air traffic to, from and within the Asia-Pacific region is expected to grow strongly. We intend to benefit from this growth by increasing our passenger capacity by 4-5 per cent per annum, at least until the third runway at Hong Kong International Airport is open."
The airline's revenue in 2016 fell 9.4 per cent from HKD102 billion in 2015 to HKD$93 billion.
The carrier's cargo revenue in 2016 was HKD20 billion, a decrease of 13.2 per cent compared to the previous year. The cargo capacity of Cathay Pacific and Cathay Dragon increased by 0.6 percent and the load factor increased by 0.2 percentage points, to 64.4 per cent. Tonnage totalled 1.85 million tonnes, an increase of 3.1 per cent.
"The market was very weak in the first quarter. Tonnage recovered from the second quarter, becoming seasonally strong in the fourth quarter. Yield fell by 16.3 per cent to HKD1.59, reflecting strong competition, overcapacity and the suspension of Hong Kong fuel surcharges.
"Demand on European routes was weak. Demand on transpacific routes grew slightly in the second half of the year. We managed freighter capacity in line with demand and carried a higher proportion of cargo in the bellies of our passenger aircraft," the airline said in a statement.
On the passenger side, revenue amounted to HK$67 billion, a decrease of 6.4 per cent from 2015. Capacity increased 2.4 per cent while the load factor decreased by 1.2 percentage points to 84.5 per cent. Yield fell by 9.2 per cent to HK54.1 cents.
"The operating environment for the Group's core airline business was difficult in 2016," the airline said pointing out "intense and increasing competition with other airlines", particularly those from China that were operating more direct flights between Mainland China and international destinations. There was also increased competition from low cost carriers.
Looking ahead, Cathay Pacific chairman John Slosar said: "We expect the operating environment in 2017 to remain challenging. Strong competition from other airlines and the adverse effect of the strength of the Hong Kong dollar are expected to continue to put pressure on yield. The cargo market got off to a good start, but overcapacity is expected to persist.
"Despite the challenges with which we are faced, we still expect our business to grow in the long-term. Air traffic to, from and within the Asia-Pacific region is expected to grow strongly. We intend to benefit from this growth by increasing our passenger capacity by 4-5 per cent per annum, at least until the third runway at Hong Kong International Airport is open."
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
