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Cathay Pacific's premium demand plunge “just the beginning”

Cathay Pacific’s hairy-chested expansion programme is hitting a potentially much bigger hurdle than fuel (which pushed the carrier deeply into the red in the first half). CEO, Tony Tyler admitted in an internal newsletter in Oct-08 that the airline is being “hit hard on the demand side” and the airline is “seriously worried” by stalling revenue growth, as premium long-haul travel drops “significantly”. The airline warned further falls in premium demand could occur as finance sector activity grinds to a halt.

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