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Cathay’s performance in first half ‘below expectations’

July 22, 2016 Headline News No Comments Email Email

egtmedia59Cathay Pacific has released combined Cathay Pacific and Dragonair traffic figures for June 2016 that show an increase in both the number of passengers carried and the amount of cargo and mail uplifted compared to the same month last year.

The first half of calendar 2016, however, has not been the greatest.

“Our performance over the first six months of 2016 has been below expectations,”

the airline’s chief executive, Ivan Chu, conceded.

“Passenger revenue has been adversely affected by the reduced load factor and intense pressure on yield.  Cargo tonnage has stabilised but yield continues to decline.  Foreign currency movements have also been adverse.”

Cathay Pacific and Dragonair carried a total of 2,870,943 passengers last month – an increase of 2.1% compared to June 2015. The passenger load factor fell by 1.7 percentage points to 85.5% while capacity, measured in available seat kilometres (ASKs), grew by 3.3%. In the first six months of 2016, the number of passengers carried rose by 2.7% compared to a 4.2% increase in capacity.

Cathay Pacific general manager revenue management, Patricia Hwang, said passenger traffic improved in June, “although the growth in passenger numbers was not able to keep pace with the capacity increase, leading to a drop in load factor.

“Traffic grew as summer travel began, and one of our newest destinations, Madrid, became operational. The improvement also reflected our recovery from last year’s outbound travel alert to Korea, which was issued due to MERS. However, pressure on yield remains severe, with competition increasing and premium demand continuing to fall short of expectations.”

Edited by Peter Needham

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