<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published March 14, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Cathay Pacific says fares not sustainable
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>
(Hong Kong)
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>MR TYLER
The impact of the financial services industry crash had an immediate effect</TD></TR></TBODY></TABLE>CATHAY Pacific Airways Ltd, Hong Kong's biggest carrier, is selling economy class tickets at 'unsustainable' prices to lure travellers as demand plunged the most in more than three years last month.
'The market has collapsed,' chief executive officer Tony Tyler said in a Bloomberg TV interview here yesterday. 'We can fill flights, but we're filling them at very low fares.'
Cathay Pacific had its first loss in 10 years as the financial crisis cut demand for flights to London and New York among business class and first class travellers. A drop in passengers also prompted Singapore Airlines Ltd, Asia's most profitable carrier, to cut its fleet by 17 planes in the year beginning in April.
'A lot of companies have been cutting down on travel,' said Jim Wong, an analyst at Nomura International Ltd here. 'The situation deteriorated very rapidly in the second half.'
Cathay Pacific and its Hong Kong Dragon Airlines Ltd unit carried 1.8 million passengers last month, a decline of 7.4 per cent from a year earlier, it said on Thursday. Freight volume dropped 17 per cent.
Cathay has suffered a 'big falloff' among premium travellers from the global financial crisis. Banks and insurers have cut more than 280,000 jobs since the crisis began. Rising unemployment in the US, Europe and Asia has also cut tourism demand.
'The impact of the financial services industry crash had a pretty immediate effect on Cathay Pacific,' said Mr Tyler.
Deutsche Lufthansa AG, Europe's largest carrier, expects profit to drop this year as traffic declines.
The Cologne-based airline will reconfigure some planes to cut the number of premium seats. American Airlines, the world's second-biggest carrier will lay off 323 flight attendants in April, adding to about 6,800 job cuts since July.
Airlines worldwide lost as much as US$8 billion last year because of the recession and fuel-hedging losses, the International Air Transport Association said on March 2. The industry may lose as much as US$2.5 billion this year as traffic declines, with carriers in the Asia-Pacific region accounting for almost half of the losses, it added. -- Bloomberg
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Cathay Pacific says fares not sustainable
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>(Hong Kong)
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>MR TYLERThe impact of the financial services industry crash had an immediate effect</TD></TR></TBODY></TABLE>CATHAY Pacific Airways Ltd, Hong Kong's biggest carrier, is selling economy class tickets at 'unsustainable' prices to lure travellers as demand plunged the most in more than three years last month.
'The market has collapsed,' chief executive officer Tony Tyler said in a Bloomberg TV interview here yesterday. 'We can fill flights, but we're filling them at very low fares.'
Cathay Pacific had its first loss in 10 years as the financial crisis cut demand for flights to London and New York among business class and first class travellers. A drop in passengers also prompted Singapore Airlines Ltd, Asia's most profitable carrier, to cut its fleet by 17 planes in the year beginning in April.
'A lot of companies have been cutting down on travel,' said Jim Wong, an analyst at Nomura International Ltd here. 'The situation deteriorated very rapidly in the second half.'
Cathay Pacific and its Hong Kong Dragon Airlines Ltd unit carried 1.8 million passengers last month, a decline of 7.4 per cent from a year earlier, it said on Thursday. Freight volume dropped 17 per cent.
Cathay has suffered a 'big falloff' among premium travellers from the global financial crisis. Banks and insurers have cut more than 280,000 jobs since the crisis began. Rising unemployment in the US, Europe and Asia has also cut tourism demand.
'The impact of the financial services industry crash had a pretty immediate effect on Cathay Pacific,' said Mr Tyler.
Deutsche Lufthansa AG, Europe's largest carrier, expects profit to drop this year as traffic declines.
The Cologne-based airline will reconfigure some planes to cut the number of premium seats. American Airlines, the world's second-biggest carrier will lay off 323 flight attendants in April, adding to about 6,800 job cuts since July.
Airlines worldwide lost as much as US$8 billion last year because of the recession and fuel-hedging losses, the International Air Transport Association said on March 2. The industry may lose as much as US$2.5 billion this year as traffic declines, with carriers in the Asia-Pacific region accounting for almost half of the losses, it added. -- Bloomberg
</TD></TR></TBODY></TABLE>
