Cathay profit plunges as corporates stay home

Thursday, 13 Mar, 2013 0

Cathay Pacific has posted an 83% plunge in profits, blaming higher fuel costs and a drop in demand for corporate travel.

The carrier made a net profit of US$118m in 2012.

“Premium class yields were affected by travel restrictions imposed by corporations,” chairman Christopher Pratt said in a statement.

“Economic uncertainty, particularly in the eurozone countries, and an increasingly competitive environment added to the difficulties."

Pratt added that high fuel costs had hurt Cathay’s profitability, especially on long-haul routes, which it said were dominated by “older, less fuel-efficient, Boeing 747-400 and Airbus A340-300 aircraft”.

In recent months, Cathay has offered unpaid leave to its cabin crew, reduced capacity on long-haul flights and retired less fuel-efficient aircraft.



 

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Ian Jarrett



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