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Cathay Pacific warns of ‘tremendous pressure’ on yield
June 21st 2019
CEO Rupert Hogg’s turnaround plan focused on yield improvements. Read More »
Cathay Pacific’s outlook is likely to worsen before it gets better. Commenting on its May passenger traffic, Cathay stepped up its language and warned of “tremendous pressure” on yield, the exact value of which is only disclosed at interim and annual results.
Long-haul traffic was strong but has now weakened, Cathay said. At its last fleet update, the carrier was due to take delivery of 13 A350s by 2020. Some have already been delivered. From 2021, Cathay is scheduled to receive more A350s and 777Xs and for regional subsidiary, Cathay Dragon, A321neos. Some aircraft were for replacement, but overall Cathay planned long-term growth.
Elsewhere, Lufthansa Group this week lowered its outlook, but on account of short-haul European traffic. The group, one of the largest operators between Asia and Europe, said long-haul flying remained strong. United Airlines this year said economy yields have picked up and it expects to out-perform the market between mainland China and the US.
