Cathay Pa­cific loss dou­bles on in­tense com­pe­ti­tion

Daily Sabah (Turkey) - - Business -

CATHAY Pa­cific’s losses more than dou­bled last year be­cause of ris­ing fuel costs and re­lent­less com­pe­ti­tion, the Hong Kong air­line said yes­ter­day. The air­line posted a 1.26 bil­lion Hong Kong dol­lar ($160 mil­lion) loss for 2017, com­pared with a HK$575 mil­lion loss the year be­fore. Rev­enue rose 5 per­cent.

“Fun­da­men­tal struc­tural changes within the air­line in­dus­try con­tin­ued to create a chal­leng­ing op­er­at­ing en­vi­ron­ment for our air­line busi­nesses,” Chair­man John Slosar said. Cathay Pa­cific Air­ways Ltd., Hong Kong’s big­gest air­line, also op­er­ates re­gional car­rier Cathay Dragon. The com­pany has been un­der pres­sure from ri­vals in­clud­ing bud­get air­lines around Asia and state-owned main­land Chi­nese car­ri­ers, which have been flood­ing key routes with pas­sen­ger seats and driv­ing down prices. Cathay’s fuel bill rose 11.3 per­cent even af­ter tak­ing into ac­count fuel hedg­ing con­tracts used to min­i­mize price swings. Jet fuel is the com­pany’s sin­gle-big­gest ex­pense, ac­count­ing for nearly a third of to­tal op­er­at­ing costs.

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