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Cathay first half performance described as 'disappointing' by new CEO
HONG KONG's Cathay Pacific is expected to report a full-year loss of HK$1.44 billion (US$185 million) this year, according to the average estimate of 18 analysts compiled by Bloomberg.
Our airline's performance in the first half of 2017 continued to be disappointing," said Cathay CEO Rupert Hogg, who took the top job in May.
"We said that we expected the operating environment in 2017 to remain challenging. This has been the case," said Mr Hogg, who plans to release first half results mid-August.
Hong Kong's Swire Group owns 45 per cent of Cathay Pacific. Another Swire unit, Hong Kong Aircraft Engineering Co (HAECO) told the stock exchange it expects bigger losses at its US operations.
As a result, the company's earnings before exceptional items for this year is set to be worse than 2016, it said. In 2016, the US unit had a loss of HK$238 million, excluding impairment charges.
Last May, Cathay announced it was laying off 600 head office personnel as part of its 30 per cent labour cost reduction scheme after the carrier posted a US$74 million net loss in 2016.
Pilots and cabin crew will not be affected, but will be asked to deliver greater productivity.
One casualty was the air cargo director, replaced by the chief customer and commercial officer, who reports to the director of service delivery.
The company said redundant workers will get "up to" 12 months' pay, medical coverage and travel benefits, as well as job search support, according to a company statement.
Some 190 management and 400 non-managerial roles will go, representing 25 per cent of management and 18 per cent of non-managerial positions respectively.
Our airline's performance in the first half of 2017 continued to be disappointing," said Cathay CEO Rupert Hogg, who took the top job in May.
"We said that we expected the operating environment in 2017 to remain challenging. This has been the case," said Mr Hogg, who plans to release first half results mid-August.
Hong Kong's Swire Group owns 45 per cent of Cathay Pacific. Another Swire unit, Hong Kong Aircraft Engineering Co (HAECO) told the stock exchange it expects bigger losses at its US operations.
As a result, the company's earnings before exceptional items for this year is set to be worse than 2016, it said. In 2016, the US unit had a loss of HK$238 million, excluding impairment charges.
Last May, Cathay announced it was laying off 600 head office personnel as part of its 30 per cent labour cost reduction scheme after the carrier posted a US$74 million net loss in 2016.
Pilots and cabin crew will not be affected, but will be asked to deliver greater productivity.
One casualty was the air cargo director, replaced by the chief customer and commercial officer, who reports to the director of service delivery.
The company said redundant workers will get "up to" 12 months' pay, medical coverage and travel benefits, as well as job search support, according to a company statement.
Some 190 management and 400 non-managerial roles will go, representing 25 per cent of management and 18 per cent of non-managerial positions respectively.
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