Cathay Pacific CEO notes cyclical nature of aviation business, uncertain outlook for 2H2012
Cathay Pacific Airways CEO John Slosar, in the Aug-2012 edition of CX World Magazine, stated (Aug-2012) the cyclical nature of the aviation business is "something we are all used to". In reference to the carrier's first half loss, Mr Slosar said, "Obviously we don’t like losing money, but we need to keep this result in perspective. We are still doing all the things we need to do – from being fiscally prudent, to building our networks, developing new products and modernising our fleet – that will ensure we succeed in the long run". He continued: "The questions now are all about how we are going to perform in the second half of 2012 – and I’m afraid to say I don’t have any clear answers at the moment. Our business in the latter six months is traditionally stronger, due to a combination of the summer passenger peak, the autumn peak for business travel and the cargo surge that usually occurs from September onwards, so I certainly do expect the second half of 2012 to improve." [more - original PR]
Cathay Pacific: "There is still not a lot of visibility out there and adding to the uncertainty is the continued volatility of fuel prices – fuel was by far the biggest factor in our disappointing first half, and in recent weeks we’ve seen prices heading back up again after the significant dip in June and early July. There is pressure in other cost areas too, and that’s something we’re going to have tackle head on. What we do know is that the benefits of the cost reduction measures we announced in May will begin to be felt soon, with three of our 747 passenger aircraft set to retire from the fleet in September. The interim loss will not result in any change of strategy or direction, and we will continue to do what it takes to deliver positive results," John Slosar, CEO. Source: Company statement, Aug-2012.