Hong Kong carrier Cathay Pacific seems to have achieved a remarkable turnaround in its fortunes.
After two full years of losses, it expects to post a healthy net profit for 2018.
In a filing Cathay said it expects to post a HK$2.3 billion ($293 million) profit for the full-year which has surprised analysts.
It posted losses of HK$1.26 billion in 2017 after recording its first ever loss a year earlier.
The airline cites steady passenger load factor even though it increased capacity as well as a strong showing for its cargo business.
It is the first tangible evidence the airline’s 2017 restructuring plan has borne fruit. It cut 600 administrative positions and replaced its chief executive then and cites the turnaround plan having a ‘positive impact’ on its current performance.
It hasn’t all been plain sailing in 2018. It was heavily criticised for its handling of a huge data breach which leaked information of more than 9 million customers.
It also issued a warning that cargo demand is likely to soften during 2019 on the back of a slowing global economy.
