Cathay says low fares cannot be maintained :: 16/03/2009 :: Airport Parking News
Hong Kong’s largest airline is having to sell tickets in economy-class at prices that it says are “unsustainable”.
← Previous Article | ↑ Articles This Month ↑ | Next Article →
Cathay says low fares cannot be maintained
Monday, 16th March 2009
The move was to entice passengers as air travel demand fell last month the most it had in three years.
Tony Tyler, the airline’s CEO, said during a television interview: “The market has collapsed. We can fill flights, but we’re filling them at very low fares, fares that are frankly not sustainable in the long run.”
Cathay Pacific reported its first loss in 10 years, and cited the drop in demand for premium-class travel on its London and New York route, due to the financial crisis, as the main reason for the poor performance.
“A lot of companies have been cutting down on travel,” noted Jim Wong, who is an analyst with Hong Kong-based Nomura International. “The situation is deteriorating very rapidly.”
Cathay and its Hong Kong Dragon Airlines unit carried approximately 1.8 million passengers in February, which was a decline of 7.4 per cent over February of 2008. It reported a drop in freight volumes of 17 per cent for the same period.
The airline’s shares have fallen by 16 per cent so far this year, after dropping 57 per cent in 2008.
← Aer Lingus reports loss for 2008
→ Hidden charges top air passenger frustration list
↑ March 2009 news index
