Cathay Pacific reports worst loss since 2003

Weak cargo demand from Hong Kong and Shanghai was one of the major reasons for the losses

capacity Cathay Pacific high fuel costs Hong Kong load factor maintenance costs premium passengers Shanghai weak cargo demand

Top air freight carrier Cathay Pacific Airways reported its worst first-half loss since 2003 – attributable to high fuel and maintenance costs, weak cargo demand and fewer premium passengers. The group saw a net loss of $121 million (HK$935 million) and its cargo revenue for the first half of 2012 was down by 7.6 per cent compared to the same period in 2011. Capacity was down by 4.3 per cent, while the load factor was down by 4.1 percentage points to 64.3 per cent. “Demand for cargo shipments from two main markets, Hong Kong and Shanghai, remained weak for most of the first half of 2012,” the company said in a statement.