Cathay Pacific Airways has issued a statement to the Hong Kong Stock Exchange stating that its financial results for the first half of 2012 would be “disappointing”. One reason for the poor show was the cargo business that has not recovered. Added to that were high fuel prices and pressure on passenger yields.
The carrier has charted out a range of measures to cut costs: adjust cargo capacity of Cathay Pacific and Dragonair, deploy fuel-efficient aircraft on long-haul flights, end the use of three B747-400BCFs this year and freeze on hiring ground staff. As for cargo, Cathay Pacific has proposed to bring down to 4 per cent from 7 per cent growth in freighters plus passenger aircraft bellies. There will be no growth in freighter capacity, compared with the 3 per cent originally targeted for 2012. In addition, ad hoc cancellations will continue to be made to match market demand.