Cathay Pacific posts worst results since 2008
 

More cuts coming up?

CX is already an LCC.......

Not as bad as BA for now. I dare them removing free food on Short-haul Y.

More enhancements on the way!

"Fuel is still Cathay’s most significant cost..."

Hmmm and I wonder what ever happened to the people who decided to hedge fuel prices ...

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.

Maybe MPC should be reverted...

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

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?

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..?

Loss in oll hedging this year: some HKD$8 billion
Profit last year: some HKD$6 billion
Very nice job CX.

Maybe they should start firing those people who know nothing about hedging?

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?)

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.