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16-Feb-2016 1:36 PM

Cathay Pacific: 2016 could be tempered by growing concerns over the state of the world’s economy

Cathay Pacific CEO Ivan Chu in the Jan-2016 edition of CX World, stated (Feb-2016) 2016 could be tempered by growing concerns over the state of the world's economy, and 2016 "may well prove to be a tough year for many businesses, airlines included." Mr Chu said: "The world looks to be moving into deflationary mode: there are indications that the US Federal Reserve will push up interest rates several times in 2016; slower growth is expected in Europe and Japan; and there are concerns that growth in China might fall short of original estimates. Trade is expected to be slow. Turmoil in the stock and commodity markets at the beginning of this year further reflects people's wider concerns over the economic outlook." He continued: "From a Cathay point of view, we need to be braced for the potential impact this economic frailty could have on our business. Fuel prices are the lowest in a decade, which is good for our airline, but unfortunately this is not translating into increased economic activity. We will need to be flexible and quicker to react, exploring ways to get revenues up at the same time as keeping costs under tight control.". [more - original PR]

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