Hong Kong’s Cathay Pacific posts HK$one.26 bn reduction for 2017



00:56 EDT, 14 March 2018

00:fifty seven EDT, fourteen March 2018

Cathay posted the first back-to-back again once-a-year reduction in its seventy one-year history but chairman John Slosar is upbeat about the outlook for 2018

Hong Kong flag provider Cathay Pacific on Wednesday announced a HK$ one.26 billion ($ 161 million) internet decline for 2017, marking the 1st again-to-back again once-a-year reduction in its 71-year historical past.
The business had been strike by intensive competitors from rival airlines and greater gas costs, chairman John Slosar mentioned.
It was the most significant annual decline the firm has noticed in nine a long time and will come as reduce-cost Chinese carriers take in into its market share.
Companies such as China Japanese and China Southern Airways are offering direct providers to Europe and the United States from the mainland, while budget carriers have focused regional travellers, undermining Cathay&#8217s placement.
However, Slosar sounded a note of optimism for 2018 as Cathay observed improved quality class demand and a powerful cargo company.
The company fared much better in the second half of 2017, when it created gains of HK$ 792 million in comparison to a decline of HK$ 2.05 billion in the very first 6 months of the calendar year.
Fuel hedging fees fell to HK$ six.38 billion in 2017 from HK$ 8.forty five billion the preceding 12 months
Cathay&#8217s loss of HK$ 575 million in 2016 was its very first time in the purple for 8 years, and prompted a administration shake-up and guarantees to slash personnel expenses by thirty per cent.
It pledged to minimize 600 workers which includes a quarter of its management as element of its greatest overhaul in two a long time.
Main executive Rupert Hogg took more than in May possibly 2017, changing Ivan Chu, who experienced been in the job for 3 years.

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