Business Round-Up
Good news expected at Cathay Pacific
March 1st 2014
Hong Kong’s Cathay Pacific Airways is expected to report a robust profit when its announces its full year results for 2013 this month. Analysts predict the airline could more than double the HK$916 million (US$118.2 million) profit of 2012. Read More » The positive predictions follow a period of healthy business class travel in the fiscal fourth quarter and higher yields from its premium economy class, which is now being extended from long haul routes to regional services. The airline group is helped by the fact that China and its fast growing millions of wealthy consumers are ambitious and status conscious when it comes to their airline of choice. Cathay Pacific is the right fit for this group, with its emphasis on prestigious premium service, luxurious lounges and a partner, in flag carrier, Air China (29.99%) that sends a lot of customers its way. This month, the airline launches its fifth service to New York, this time to Newark. In coming months it will increase frequencies to Australia, Chicago and Los Angeles and build its code share agreements. Cargo, however, remains deep in the doldrums – after a short fillip in business late last year and a pick-up in the peak pre-Chinese New Year. The airline still is carrying significant over-capacity in freighters. Last month, Cathay added its 12th U.S. freighter destination, Columbus, Ohio with a twice a week schedule. Earlier in the month, it launched a three times a week freighter service to Mexico City.
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