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Cathay Pacific posts worst results since 2008

Cathay Pacific posts worst results since 2008

Old Mar 15, 2017, 1:00 am
  #1  
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Cathay Pacific posts worst results since 2008

More cuts coming up?


In response to weak revenues, we have undertaken a critical review of our business. In the short term, we are implementing measures designed to improve revenues and reduce costs,” said John Slosar, (the chairman of Cathay, ) “ The longer term strategy which is being developed in response to the review is designed to improve performance over a three year period.”
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Old Mar 15, 2017, 1:11 am
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CX is already an LCC.......
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Old Mar 15, 2017, 1:27 am
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Originally Posted by CX201
CX is already an LCC.......
Not as bad as BA for now. I dare them removing free food on Short-haul Y.
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Old Mar 15, 2017, 1:37 am
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More enhancements on the way!

Last edited by SilverChris; Mar 15, 2017 at 9:53 am
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Old Mar 15, 2017, 1:39 am
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"Fuel is still Cathay’s most significant cost..."

Hmmm and I wonder what ever happened to the people who decided to hedge fuel prices ...
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Old Mar 15, 2017, 2:10 am
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I wonder is cuts on frequency and destinations the more obvious answer. Park some planes until holiday season or something?

PRC transit traffic surge demand and economic fluctuations is hard to manage.
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Old Mar 15, 2017, 2:50 am
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Maybe MPC should be reverted...
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Old Mar 15, 2017, 2:56 am
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I wonder what the impact of the Marco Polo Club changes have been? While probably too early as not a full year since the changes, the loss of solid (though not high value for those who do not value the Y+/Y Diamonds) and reliable member must now be feeding through.

Whereas each year I used to fly 20-25 times with CX I have not set foot on a CX place since last August, and cannot see my next flight on CX unless I do a redemption booking.

Definitely would hope the Treasury Department has been smartened up though.

Nicc
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Old Mar 15, 2017, 3:50 am
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Originally Posted by Nicc HK
I wonder what the impact of the Marco Polo Club changes have been?
I don't have hard empirical data but wonder why a lot of established airlines (UA, AA, BA) are culling passengers earning status on Economy but new airlines still court them?
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Old Mar 15, 2017, 4:03 am
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Originally Posted by cysyuen
Not as bad as BA for now. I dare them removing free food on Short-haul Y.
When hot meals were replaced by a sandwich between HKG and TPE there was pandemonium and revolts. So imagine if they removed any meal altogether..?
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Old Mar 15, 2017, 4:15 am
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Loss in oll hedging this year: some HKD$8 billion
Profit last year: some HKD$6 billion
Very nice job CX.
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Old Mar 15, 2017, 4:17 am
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Maybe they should start firing those people who know nothing about hedging?
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Old Mar 15, 2017, 5:29 am
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Or..get back to the basics..1) improve the product, 2) incentivise the customers- especially the best ones- to bring business back, and 3) have a leadership that inspires the team. Small bits on all, though admittedly hard-work...harder work than a) changing the menu design and claiming F&B improvements, b) paying a cheap consultant for a bad copy paste job, c) an all hype, no concrete takeaway strategy session

Basically the opposite of what's been going on- cutbacks when competition is improving, kicking the loyal base in the backside, and a leader who inspires antagonism from pretty much all stakeholders, continuing at the helm..
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Old Mar 15, 2017, 5:56 am
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Originally Posted by jagmeets
Or..get back to the basics..1) improve the product, 2) incentivise the customers- especially the best ones- to bring business back, and 3) have a leadership that inspires the team. Small bits on all, though admittedly hard-work...harder work than a) changing the menu design and claiming F&B improvements, b) paying a cheap consultant for a bad copy paste job, c) an all hype, no concrete takeaway strategy session

Basically the opposite of what's been going on- cutbacks when competition is improving, kicking the loyal base in the backside, and a leader who inspires antagonism from pretty much all stakeholders, continuing at the helm..
Well that's the customer-friendly way of doing it.

But CX certainly doesn't have to do that. They can cut costs until only the captive HKG O&D passengers' faces turn blue. Ground old and larger aircraft and maximise thin frequency. Optimise fares based on HKG slot hold til our balls are the same colour as our faces. And certainly relegate the "loyal" but captive non-premium frequent travelers back to where CX thinks they belong.

(Anything else they can copy over from BA/IB?)
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Old Mar 15, 2017, 6:33 am
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Originally Posted by garykung
Maybe they should start firing those people who know nothing about hedging?
Well, if fuel price hedging is CX's biggest cost other than fuel itself, it seems logical that CX may do some cost cutting there.
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