Cathay warns of more turbulence

Business | Tereza Cai 22 Aug 2019

Cathay Pacific Airways' (0293) business performance is expected to deteriorate after posting a 4 percent increase in passengers and 8.2 percent drop in cargo in July.

In particular, although overall passengers rose last month, those from the mainland fell 2.8 percent - the only area that saw a decline.

Ronald Lam Siu-por, the airline's new chief customer and commercial officer, said the anti-fugitive bill protests did not affect its July passenger business, but predicted the performance in August and onward would come under pressure, as inbound tourism demand is dropping significantly, with outbound business also weakening. Cathay Pacific and subsidiary Cathay Dragon recorded a combined 4.4 percent year-on-year increase in passengers carried during the first seven months, but a 6.7 percent decline in cargo business.

Separately, Singamas Container (0716) said its interim net loss enlarged by 22.9 times year-on-year to US$50.33 million (HK$392.57 million), dragged by the Sino-US trade tensions and a plethora in the container market.

The net loss included a provision for deferred tax charge of US$8.82 billion from the disposal of its subsidiaries.

First-half revenues fell 39.74 percent to US$584 million. Net loss per share was 2.08 US cents. No dividend was declared.

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