Cathay Pacific has blamed a drop in cargo demand, higher fuel costs and waning premium travel for its half-year losses of HK$935 million.
Asia’s biggest international carrier saw shares slump the most in three years after posting the loss – about £77 million, reports Bloomberg.
Sales of premium-class seats were hit by economic concerns, which deterred businesses from buying tickets, Cathay said.
Corporate-travel demand from Hong Kong declined, hitting revenue on flights to cities including Singapore and New York, it said.
In May Cathay stopped hiring ground staff, offered cabin crew voluntary unpaid leave and pared capacity growth to help pare costs. It’s also accelerating the retirement of 747-400 passenger planes in favor of 777-300ERs.
Singapore Airlines, which has taken similar cost-cutting steps, posted a loss in the three months ending March followed by a better-than-expected increase in profit in the quarter to June.
