Massive Cathay Pacific interim loss blamed on low-cost carriers

Posting its first interim loss since 2012, Cathay Pacific has blamed its HK$2.05bn interim loss on stiff competition both from Chinese airlines as well as low-cost carriers. Hong Kong-based Cathay Pacific had been expected to post a loss, but analysts had underestimated it with a projected HK$1.2bn deficit.Passenger revenue fell to HK$32.1bn, 3.9 percent down on the same period in 2016. Yield, or revenue per kilometer, fell 5.2 percent, affected by fierce competition and a stronger Hong Kong dollar. The airline has also struggled with poor fuel hedging results, despite being reduce to HK$3.23bn as opposed to HK$4.49bn for the same period last year, despite fuel costs increasing to HK$14.93bn compared to HK$13.25bn for the same interim period in 2016. (US$1.00 = HK$7.82 at time of publication.)