Cathay expects slow recovery for yields
(11-20 21:58)
Cathay Pacific Airways expects yields will take a long time to recover as the global recession continues to damp business and leisure travel.
"It's very unlikely that things will be as good as they were in 2007 for some time to come, chief executive Tony Tyler in Singapore.
Cathay made a HK$7 billion profit that year, the biggest since at least 1990.
The carrier's yields, or average revenue per passenger, have fallen 20 percent, as the company has slashed fares to lure back travelers.
The airline has also parked planes, given staff unpaid leave and delayed a cargo terminal to pare costs.
Demand seems to have rebounded, but it's most likely just driven by low ticket prices, said Jay Ryu, a Mirae Asset Securities analyst in Hong Kong. Paying higher fares is the last thing that passengers want to do.
Cathay fell 1.9 percent to HK$13.50 at the close of trading in Hong Kong. The shares have surged 55 percent this year.
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