Cathay Pacific: 2012 looks to be even more challenging than 2011

Cathay Pacific chairman Chris Pratt, in the Mar-2012 edition of CXWorld, stated last year's economic uncertainties have continued into 1H2011 and 2012 looks set to be even more challenging than 2011. "For that reason we are cautious about prospects for the year ahead- though we remain bullish on the long-term future of Cathay Pacific," he said. CEO John Slosar added the "corner hasn't been turned just yet". He continued: "Short term, it is not an encouraging picture I'm afraid, but I remain optimistic about our long-term prospects. We must and will keep doing the things we need to do to be successful in the long term - especially investing in aircraft, product, infrastructure and people - and I can assure you we will be ready when the rebound comes." [more - original PR] [more - CAPA Market Update]

Cathay Pacific: "While the prospects within Asia are still looking okay, and things in North America have improved a bit, the outlook for European economies is still bleak. The falling passenger yields that became more of a problem during the fourth quarter of 2011 have continued into 2012 - and if anything the pressure is increasing. Our cargo business is getting a temporary boost from shipments of certain highly desired consumer products, but we are still falling short of target and the outlook beyond April remains uncertain. And then there is fuel. Our gross fuel costs soared by more than HKD12 billion last year and the high price of jet kerosene remains our biggest worry. At the time of writing it is close to USD40 a barrel and the price seems to move in only one direction - up," John Slosar, CEO. Source: Company statement, Mar-2012.