Cathay Pacific warns that Hong Kong protests could harm August revenues

Darren Wood
By Darren Wood August 22, 2019 09:00

Cathay Pacific warns that Hong Kong protests could harm August revenues

Cathay Pacific Group has warned that the recent protests in Hong Kong which saw many flights cancelled could harm its revenues in August.

Cathay Pacific chief customer and commercial officer Ronald Lam said: “Recent events in Hong Kong over the past two months did not substantially impact our passenger business in July; however, we anticipate a much more significant impact to our revenue in August and onwards.

“Traffic into Hong Kong, both business and leisure, has weakened substantially and we’ve also now seen ex-Hong Kong traffic starting to soften, especially on our short-haul network including mainland China, Taiwan, South Korea and South East Asia. Providing a customer experience that is second to none has always been a cornerstone of the Cathay Pacific brand and is how we will maintain our reputation as one of the greatest service brands in the world.”

Following the riots, both Rupert Hogg and Paul Loo resigned as chief executive and chief customer commercial officer, respectively. 

This meant that Lam replaced Loo as its chief customer and commercial officer on 16 August.

Following the riots, both Rupert Hogg and Paul Loo resigned as chief executive and chief customer commercial officer, respectively. 

This meant that Lam replaced Loo as its chief customer and commercial officer on 16 August.

Cathay Pacific Group released combined traffic results for Cathay Pacific and Cathay Dragon in July 2019.

Cathay Pacific and Cathay Dragon carried a total of 3.28 million passengers last month – an increase of 4% compared to July 2018.

However, passenger load factor decreased by 0.6 percentage points to 86.1%, while capacity, measured in available seat kilometres (ASKs), rose by 7.2%. In the first seven months of 2019, the number of passengers carried grew by 4.4% while capacity increased by 6.7%, as compared to the same period for 2018.

The two airlines carried 169,720 tonnes of cargo and mail last month, a drop of 8.2% compared to the same month last year. The cargo and mail load factor fell by 7.2 percentage points to 63.1%.

Capacity, measured in available freight tonne kilometres (AFTKs), was up by 0.8% while cargo and mail revenue freight tonne kilometres (RFTKs) dropped by 9.4%.

In the first seven months of 2019, the tonnage fell by 6.1% against a 1.0% increase in capacity and a 6.6% decrease in RFTKs, as compared to the same period for 2018.

Darren Wood
By Darren Wood August 22, 2019 09:00