Cathay Pacific cautions on rebound in aviation industry; Asia worst hit but will bounce back quicker
Cathay Pacific CEO, Tony Tyler, stated (21-Oct-2009) he remains “cautious” about the prospects of the aviation industry seeing any sustained pick-up in the near future. Speaking at the Aviation Club in London, Mr Tyler stated that while there is talk about economic 'green shoots', “we are not seeing much of that kind of plant life ourselves”. Mr Tyler also questioned whether the recent signs of stabilisation in the large falls in cargo and passenger numbers is seasonal or structural. He added that Asian airlines have been hit harder than their European and US counterparts in the current downturn, in a large part due to the collapse in premium traffic. However, Mr Tyler added that the region is likely to bounce back more quickly when true recovery comes, stating, “that is the nature of the region. Asia is sharply focused on economic development, it is on strong financial foundations and it’s entrepreneurially nimble and agile”.[more]
Cathay Pacific: “This is traditionally a good time for us on both the premium passenger and freight fronts. And we are seeing that this year. But whether it heralds a return to greener pastures remains to be seen. We’ll have a better idea by the end of the year. I remain cautious. What I think is happening is a slow recovery effect exaggerated and amplified by seasonal factors. The longer the seasonal effect lasts, the easier it is to kid ourselves that we are seeing a sharp rebound. I’m not so sure,” Tony Tyler, CEO. Source: Company Statement, 21-Oct-2009.