Cathay losses worsen amid "intense competition"
Cathay Pacific has posted a loss of over £200million for the first half of the year amid “intense competition with other airlines”.
The slump follows a £35million profit over the same period last year and a £90million loss in the second half of 2016.
The deteriorating performance – its worst six-month period in over 20 years – was also blamed on “major adverse factors” including higher fuel prices, the strength of the Hong Kong dollar and higher aircraft maintenance costs.
A three-year restructuring programme is underway, designed to deliver "a long-term sustainable recovery in revenues and financial performance,” transforming the airline into a “leaner, more agile and more profitable airline”.
Cathay Pacific Chairman John Slosar says: "We expect to see the benefits of our transformation in the second half of 2017, and the effects will accelerate in 2018.”
He adds: “We are addressing the industry challenges through our corporate transformation and by expanding our route network, increasing frequencies on our most popular routes and buying more fuel-efficient aircraft.
"This will help us to increase productivity and to reduce costs while improving the quality of our services to customers. We continue to enhance our high standards of customer service and are proud of the quality, dedication and professionalism of our staff.”