Cathay Pacific confirms hiring freeze
Cathay Pacific Airways has confirmed a hiring freeze for the airline and its unit, Hong Kong Dragon Airlines, as part of its cost-cutting measures to deal with reduced demand.
Cathay Pacific chief executive Tony Tyler recently said in a staff newsletter the hiring suspension took effect at the end of October. He added the airline aims to adjust its operating plan for next year in anticipation of a weak market for air travel.
However, he said: “I remain unashamedly optimistic about the future of aviation in Asia – just think of the potential in China and India alone.”
The airline’s plans to cut costs include the removal of five Boeing 777-200 passenger aircraft from service over the next two years, as well as returning two of Dragonair’s Airbus A330 aircraft to their owners when the leases expire in June.
Tyler said the removal of the 777-200s, which include the first ever 777 ever built, will help Cathay Pacific simplify its fleet structure, adding “if we do manage to sell them, the cash will come in very useful.”
Showing posts with label China. Show all posts
Showing posts with label China. Show all posts
Wednesday, 12 November 2008
Saturday, 8 November 2008
Cathay Pacific expects disappointing 2008 results
Cathay Pacific expects disappointing 2008 results
Cathay Pacific Airways has said it expects “disappointing” 2008 results from weak passenger revenue and substantial losses from fuel hedging contracts.
The Hong Kong based airline said yesterday the recent decline in fuel prices has resulted in HK$2.8 billion (£227.6m) in mark-to market losses on its fuel hedging contracts.
The loss amounts to about 40 per cent of its 2007 net profit of HK7.02 billion (£570.7m), but the actual loss for this year will depend on the movement of fuel prices.
“Corporate travel volumes in all classes are of concern as corporate clients begin to impose stricter travel polices on their employees,” Cathay Pacific said.
The company reported a first-half net loss of HK$663 million (£53.9m), its first since 2003, compared with a net profit of HK$2.58 bn (£209.7m) a year earlier.
But despite fears of a global recession next year, analysts said they expect Cathay Pacific to benefit from a sustained decrease in fuel prices and improved demand for passenger services to China.
UBS analyst Damien Horth said he believes Cathay Pacific’s acquisition of China-focused Hong Kong Dragon Airlines in 2006 has “materially improved the competitive position of the Hong Kong hub, relative to previous downturns”.
Cathay Pacific Airways has said it expects “disappointing” 2008 results from weak passenger revenue and substantial losses from fuel hedging contracts.
The Hong Kong based airline said yesterday the recent decline in fuel prices has resulted in HK$2.8 billion (£227.6m) in mark-to market losses on its fuel hedging contracts.
The loss amounts to about 40 per cent of its 2007 net profit of HK7.02 billion (£570.7m), but the actual loss for this year will depend on the movement of fuel prices.
“Corporate travel volumes in all classes are of concern as corporate clients begin to impose stricter travel polices on their employees,” Cathay Pacific said.
The company reported a first-half net loss of HK$663 million (£53.9m), its first since 2003, compared with a net profit of HK$2.58 bn (£209.7m) a year earlier.
But despite fears of a global recession next year, analysts said they expect Cathay Pacific to benefit from a sustained decrease in fuel prices and improved demand for passenger services to China.
UBS analyst Damien Horth said he believes Cathay Pacific’s acquisition of China-focused Hong Kong Dragon Airlines in 2006 has “materially improved the competitive position of the Hong Kong hub, relative to previous downturns”.
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