Article from BTNews 25 MARCH 2019
Cathay moves back into profit
Rising airfares and a turnaround plan designed to lower costs and boost revenue have been credited by Cathay Pacific Airways for putting the airline into profit in 2018 for the first time in three years.
The Hong Kong-based carrier made a HK$2.35bn (about £228m) profit for the year ended 31 December. Cathay said it was also “reasonably optimistic” about passenger and cargo markets in 2019 “despite recognising challenges ahead”.
Chairman John Slosar said these include geopolitical discord, global trade tensions and intense competition that could dampen cargo demand as well as passenger demand particularly on long-haul routes in Economy Class.
Cathay, which made a loss of HK$1.25bn in 2017, reported HK$111bn in revenue for 2018, up 14.2%, with increases in both passenger and cargo volumes. The 2018 result was in line with guidance issued last month for a profit of HK$2.3bn.
Slosar said Cathay plans to “compete hard” by extending its route network to destinations not currently served from Hong Kong, increasing frequencies on its most popular routes and operating more fuel-efficient aircraft.
Meanwhile, Cathay confirmed media reports it is in “active discussions” to acquire shares in Hong Kong Express Airways (HKE) but said no agreement had been entered into.
“There can be no certainty that any agreement will be entered into. Further announcement(s) will be made as and when appropriate,” a statement added.
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