Cathay Pacific’s financial woes look to be worsening with Hong Kong’s flagship carrier reportedly set to announce an estimated interim loss of HK$1.2 billion (US$153 million), the South China Morning Post reports.
The airline is set to officially announce its financial results for the first six months of 2017 tomorrow.
These results would vastly overshadow the HK$575 million (US$74 million) loss the airline reported back in March for the entire 2016 fiscal year. Cathay Pacific cited the fuel-hedging crisis as well as a weaker economy, particularly in China, for the loss back in March. The carrier has also been losing out to budget airlines as well as Middle Eastern and mainland Chinese carriers.
It remains to be seen whether this new reported loss will result in another and possibly deeper round of cuts. Cathay Pacific previously announced in May it would be letting go of 600 staff by the end of the year following its poor annual financial performance.
The airline’s passenger traffic has also been fluctuating. After a 3.2 per cent increase in April compared with the same month in 2016, the carrier reported a 0.5 per cent decrease in May and a 2.1 per cent drop in June.
Cathay Pacific isn’t the only carrier facing financial woes, however. Back in June, Singapore Airlines said it would be undergoing a business review following a more than 50 per cent drop in profits in 2016 compared with the previous year.
Meanwhile Abu Dhabi-based carrier Etihad announced a massive US$1.87 billion annual loss for 2016 last month.