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Flights up, Finances Down at Cathay Pacific

Hong Kong’s flag carrier has increased flights on a number of routes, but the airline is expected to reveal less than resilient financial results for the year ending 2016.

It may currently be in the middle of a restructure, but Cathay Pacific has announced that it is planning to increase the number of flights on selected Australian, North American and European routes.

Hong Kong’s flag carrier has said that it will be upping services to the cities of Brisbane, San Francisco, Paris, Madrid and Manchester. According to the South China Morning Post, most of these scheduled changes will take effect in the late autumn and early winter of 2017. These increases are in addition to the new flights previously announced by the carrier to Tel Aviv as well as seasonal services to Barcelona and Christchurch.

In a statement, Paul Loo, Cathay Pacific’s director of corporate development and IT, explained that, “Our network enhancements are designed to improve our customers’ experience through greater choice and added convenience. Increasing frequencies to these popular Cathay Pacific destinations strengthens our ability to connect our passengers with all corners of the world in addition to growing our home hub of Hong Kong.”

Despite the increases in flights to these multiple cities, Cathay Pacific also said that it will be cutting the number of weekly services it operates to Los Angeles from 28 down to 21.

These schedule changes come as the carrier is preparing to reveal its 2016 financial results next week. While these network enhancements are certainly positive, it is nevertheless predicted that the carrier will reveal that it has been operating at a loss. Low oil prices have created stiff competition for Cathay while global turmoil has also taken a toll on the airline.

In January, the airline said that it would be reviewing its business operations due to the financial challenges it is currently experiencing.

[Photo: Shutterstock]

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3 Comments
K
kkua August 24, 2017

Their attempt of trying to counter the Gulf Carriers and regional LCC carrier strategies are commendable. But let's face realities, (1) do we really need 4 daily flights between JFK and HKG? (2) HKG is not a strategically located hub fo connect. For North America to SE Asia, would you rather have a super long haul connecting to a regional flight on CX versus 2 flights with a reasonabe midpoint connection? (3) they are flying low-yield routes. Follow SQ's example: shrink widebody fleet; upgauge heavy routes and decrease frequencies; and push all flights under 5 hours to their subsidiaries.

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swm61230 March 14, 2017

True Cathay is a bit excessive on a lot of their fares.

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FlyingNone March 13, 2017

Maybe if they'd lower their ridiculous prices ??? I recently checked fares from SGN to HKG. AsiaAir and Vietjet were $58 and $94 one way. Cathay was $735 !!