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Cathay Pacific: current conditions “very difficult”; but seeing stabilisation in cargo business

10-Jun-2009

Cathay Pacific CEO, Tony Tyler, stated that current business conditions are “very difficult”, with the CEO adding, “we haven’t yet seen any sign of a recovery”. The carrier is facing a “toxic” combination of low fares, a significant reduction in premium travel, weak cargo load factors, “poor” yields and a negative currency impact, which is making it “more important than ever” for the carrier to protect its cash levels. [1504 words]

Unlock the following content in this report:

Subheadings:

  • More aircraft deferrals
  • Significant unpaid leave scheme uptake; further cost-cutting measures likely
  • Reducing passenger capacity by 8% and cargo capacity by 11%
  • No intention of selling stake in HAECO
  • Planning to alter fuel hedging programme
  • Enhances cooperation with Finnair; to reduce Kota Kinabalu frequencies as part of redeployment strategy
  • Launches 'Booking Management Service'
  • Executive appointments

Graphs and data:

  • Cathay Pacific passenger number and cargo volume growth: Apr-2008 to Mar-2009
  • Cathay Pacific fleet delivery plan: as at Jun-2009
  • Cathay Pacific Special Leave Scheme: Announced Apr-2009
  • Cathay Pacific cost-reduction measures in response to business downturn
  • Cathay Pacific major subsidiaries and associates
  • Cathay Pacific capacity share (% of total network)
  • Cathay Pacific reductions compared with the 2008 peak
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