Cathay Pacific expects high pax load factors in summer peak but yields remain pressured

Cathay Pacific, in the Jun-2012 edition of CXWorld, stated (Jun-2012) high passenger load factors are predicted over the summer peak but yields remain under pressure in all cabins. "Bookings are building up quite nicely," said GM revenue management James Tong, adding, "We should have good load factors over the summer, but yield is still coming under pressure in all classes." The peak, which begins in mid Jun-2012 and runs through to early Sep-2012, will see the usual strong demand for leisure travel, Mr Tong said. Korea looks set to be the "summer hot spot" for Hong Kong holidaymakers, along with Taiwan and the usual holiday destinations in Southeast Asia. "We're also seeing healthy bookings on most long-haul routes, particularly North America. However, load factors to London over the Olympics period are currently not encouraging," Mr Tong noted. Regional demand will remain high, buoyed by new Dragonair destinations, the carrier said although Mr Tong said the recently launched Dragonair routes are a mixed bag at the moment. He said, "Xi'an, Guilin and Jeju are all doing well, and we expect flights on these routes to be busy in the next two months, but Taichung and Clark are building up more slowly." The carrier noted that while summer is not a peak season for business travel, the trend is not encouraging. In recent weeks, volumes have been declining and yield softening, particularly in key corporate markets such as London, New York and Singapore. "The total market for business travel has been in decline as financial institutions pare back their travel plans," Mr Tong concluded. [more - original PR]