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Cathay Pacific: Current economy making 'life difficult for the aviation industry in 2012'

23-Jan-2012 2:55 PM

Cathay Pacific, in the Dec-2011 issue of CXWorld, stated the carrier is optimistic regarding the future despite current economic conditions continuing to "make life difficult for the aviation industry in 2012". The carrier conceded that the "global uncertainty has bitten deeply into business this year, particularly on the cargo side". The carrier expects to increase passenger capacity (ASKs) by 7% in 2012 with cargo capacity growth of 10%, down from a previously anticipated 17%. CEO John Slosar stated the carrier needs to be "mentally flexible" to meet "whatever challenges might be thrown the airlines' way" in 2012. He continued: "Aviation is what it is and it will take a lot of grit – things are not going to come our way easily next year." COO Ivan Chu warned one of the big challenges in 2012 will be to keep costs under control. "We cannot afford to allow costs to grow faster than revenue and capacity growth," he said, adding all departments within the airline have been asked to minimise discretionary spending in 2012.