Cathay chairman: Cargo business “problematic”
Cargo business continues to be affected by "strong competition and weak demand" despite some improvement in 2013.
March 20, 2014
Cathay Pacific chairman Christopher Pratt has commented that Cathay’s operating environment has “remained challenging throughout 2013″. “The cargo business continues to be problematic. There is still no sign of any sustained improvement in the market and some changes in the business appear now to be structural rather than cyclical. We thus have reduced the size of our freighter fleet and at the same time increased its efficiency,” he said.
The cargo business continued to be affected by strong competition and weak demand, athough there was some seasonal improvement in the last quarter of 2013. The business overall continued to be affected by the sustained high price of jet fuel, which accounts for 39 per cent of total operating costs in 2013.