8-Feb-2013 11:57 AM

Cathay Pacific: Outlook for 2013 remains unclear, long-haul capacity to be down in 2013

Cathay Pacific GM revenue management James Tong, in the Jan/Feb-2013 edition of CXWorld, stated (Feb-2013) that after a difficult year for the passenger business in 2012, the outlook for the year ahead is still unclear. He noted, "The first three weeks of 2013 saw revenue fall short of budget, but we are anticipating a strong surge in business over Chinese New Year, with a total of 77 pairs of extra sectors being operated for both CX and KA". He also said: "What happens this year is very much dependant on the macro economic environment – which at the moment remains very uncertain". He expects long-haul routes such as North America and London will "continue perform to well though we have been seeing some softening in the region, with demand to and
from North Asia the most affected". Long-haul capacity in 2013 will be down on last year, though the carrier is adding back some frequencies on routes such as Los Angeles and Toronto. He added, "The fact that more 747s will be replaced by 777-300ERs, with fewer seats, will keep ASKs down". He also noted that at the same time, the carrier has been growing in the region, especially through Draongair. He said: "Getting the right mix between long-haul and short-haul will be the main challenge for our commercial teams this year. We expect competition to continue to be strong, especially for the PRC and the Middle East and from LCCs in the region. That will put more pressure on yield. On the plus side, we will get a boost from our great new inflight products, and reaching critical mass for premium economy will enable us to look for new market segments". [more - original PR]

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