Cathay Pacific losses snowball to HK$1.25 billion, first back-to-back loss in 71-year
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One wonders how much spending/depreciation/losses were brought forward to make 2017 look bad (and to also be able to blame things on the failed Ivan Chu) so there can then be a turnaround in 2018 which makes Rupert look good.
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Originally Posted by Isochronous
(Post 29517960)
One wonders how much spending/depreciation/losses were brought forward to make 2017 look bad (and to also be able to blame things on the failed Ivan Chu) so there can then be a turnaround in 2018 which makes Rupert look good.
But we'll be looking at yield first and foremost, I suppose. Harder to fudge that. |
Originally Posted by percysmith
(Post 29518051)
Average first two years' performance then.
But we'll be looking at yield first and foremost, I suppose. Harder to fudge that. the airline itself is profitable excluding the errors on fuel and forward losses also for someone that is obsessed about LCC's and striving to be treated like cattle , you would want yield to fall... |
Originally Posted by Kachjc
(Post 29518203)
also for someone that is obsessed about LCC's and striving to be treated like cattle , you would want yield to fall...
Second time you've made a point that's illogical https://www.flyertalk.com/forum/cath...l#post29392522 |
An article full of common sense:
Cathay Pacific is a case study in how most companies fail in the long run ? if they don?t change | South China Morning Post |
Originally Posted by brunos
(Post 29521581)
An article full of common sense:
Cathay Pacific is a case study in how most companies fail in the long run ? if they don?t change South China Morning Post |
Cathay is the victim of their own failures and the fierce competition from mainland airlines. Own failures such as fuel hedges that make no sense, not aggressively going after the China market (could be limited by Beijing so not really their fault), offended and pushed out their most loyal fliers that were willing to pay premium prices with them to keep status, branding itself as luxury airline but cuts services, etc. However, Cathay is also in a tough spot when mainland airlines are selling all cabins are ridiculously low prices.
One would think Cathay wants to secure their home turf, Hong Kong, by offering competitive prices in and out of Hong Kong. But rather, in reality, if departure/destination is Hong Kong it is usually the most expensive. Some people claimed this is because Cathay has strong yields for Hong Kong traffic so there's no pressure to deflate prices. However, on the last 3 business trips I fly with Cathay in and out of Hong Kong, the air craft is pretty empty, a quick glare back to the Y class shows it to be virtually deserted. It could be the exception, and the 6 days I was traveling were happen to be low-yield days, but I don't ever remember seeing a situation like this in my 30 years of flying with Cathay. Really to win people back is simple: increase product and service quality, reasonable fares, and attractive FFP. But again and again airlines decided to go price war and the industry seems to be like a race to LCC. |
Cathay Pacific losses snowball to HK$1.25 billion, first back-to-back loss in 71-year history
Cathay Pacific racks up first back-to-back loss in 71-year history, at HK$1.25 billion | South China Morning Post |
Well yes, but with a $6.377bn loss on fuel hedging, so that would be a $5.12bn profit but for that monumental cock-up.
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Passenger load still roughly constant-0.1% but yield down -3.1%
http://www.hkexnews.hk/listedco/list...0180314155.pdf |
Not bad for the performance.
They have profit for the 2nd half. |
Originally Posted by Cathay Dragon 666
(Post 29522044)
Really to win people back is simple: increase product and service quality, reasonable fares, and attractive FFP. But again and again airlines decided to go price war and the industry seems to be like a race to LCC.
Originally Posted by percysmith
(Post 29522393)
Passenger load still roughly constant-0.1% but yield down -3.1%
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They deserve to struggle imo. Heavily government supported competitors in the mainland and the Middle East required a different approach, and instead CX tried their hardest to just do the same thing. They tried to push their own government influences to protect sky high ex-HKG fares, at the expense of focus elsewhere, and its bitten them. It will be a tough turnaround but i think they still have enough reputation and product quality to do it.
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Originally Posted by percysmith
(Post 29522691)
The way to achieve the former/improve the latter is to stop being a slot hog and cut back? VA's complaining about HKG slot unavailability https://www.ausbt.com.au/virgin-aust...edule-shake-up
anyone who thinks more competition = higher profits is retarded especially if the slots are going to airlines that do not have to post a profit on that route |
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