23-Oct-2012 10:38 AM

Cathay Pacific does not expect sustained recovery in 2012

Cathay Pacific CEO John Slosar, in CX World Magazine Oct-2012, stated (Oct-2012) "it’s hard to see much hope of a sustained recovery in 2012 at this point", noting economic conditions show "a very gloomy picture". He noted the state of the aviation industry is very much dependent on the state of the global economy stating, "for the past 18 months we have experienced continued weak demand, particularly for cargo. Recent assessments indicate that the world’s economic woes are far from over. Earlier this month the International Monetary Fund stated that the global economic slowdown is worsening, cutting its growth forecasts once again. Europe remains on the brink of a crisis, the US is struggling to get its economy moving again, and even the so-called BRIC economies – touted as the new engines for global growth – are stalling".

Cathay Pacific: "After announcing a loss in the first half of 2012, we were pinning our hopes on a stronger second half driven by the traditional peaks for cargo and business travel. It’s too early to say how strong that rebound will (or won’t) be, but with the world’s economies remaining depressed – and China’s growth slowing again – it’s hard to see much hope of a sustained recovery in 2012 at this point. We are all aware this is a cyclical industry and it appears we’re in a very stubborn downturn at the moment, coupled with the continued burden of high fuel prices. That means we’re going to need to stay focused on containing costs wherever possible. The challenges we face aren’t insurmountable by any means, but they certainly aren’t insignificant either," John Slosar, CEO. Source: Company statement, Oct-2012.

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