Slosar blames overcapacity, falling yields for Cathay Pacific loss

Business | 14 Mar 2018 1:36 pm

Cathay Pacific Airways chairman John Slosar said today overcapacity and pressure on yields on many key routes created a difficult operating environment.

He said several one-off factors impacted the financial results in 2017.

In March, the European Commission imposed a fine of 57.12 million euros (about HK$498 million) following a ruling that a number of international air cargo carriers, including Cathay Pacific, had agreed to cargo surcharge levels before 2007 and that such agreements infringed European competition law.

An application has been made to annul the decision, Slosar said.

In the same month, Air China completed an issue of A shares and, as a result, Cathay Pacific’s shareholding was diluted. A gain of HK$244 million was recognized on the deemed partial disposal. In April, Cathay Pacific disposed of its interest in TravelSky Technology at a profit of HK$586 million.

Slosar noted that congestion at Hong Kong International Airport and air traffic control constraints in the Greater China region continued to impose costs on the group.

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