Cathay Pacific issues profit warning as traffic continues to plunge
Cathay Pacific has suffered a further drop in traffic as Hong Kong’s anti-government protests continue to put people off visiting the destination.
Cathay carried 2.4 million passengers in September, which was down 7.1% year-on-year, leading group chief customer and commercial officer Ronald Lam issued a second-half profit warning.
The airline now expects second-half earnings to be lower than in the first six months of the year.
Cathay has cut capacity and downgraded some routes but load factors still fell to 73.6% last month.
Lam said the airline is mulling ‘short-term tactical’ measures which will kick in for the October-March winter season.
"We continue to see a significant shortfall in inbound bookings for the remainder of 2019 as compared to the same snapshot last year. This has been felt most strongly with bookings from mainland China and our other Asian markets," Lam said.
Traditionally Cathay can rely on the Golden Week national holidays in China to boost load factor and yields, but the ongoing protests have scared mainland Chinese visitors away.
Passenger numbers from mainland China were down 23.3% in September, although Lam said the airline’s transit traffic was ‘relatively stable.’
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025