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15-03-2017, 02:51 PM
Cathay Stock Drops After Posting First Loss Since 2008
Cathay Pacific Airways Ltd. reported its first loss in eight years and scrapped plans for a second-half dividend after competition from Chinese airlines and losses from fuel hedging dented earnings. The stock fell the most in seven months.
The net loss totaled HK$575 million ($74 million) in 2016, Hong Kong-based Cathay said in a statement Wednesday. That compares with the median profit estimate of HK$450 million in a Bloomberg News survey of nine analysts. Sales at Asia’s largest international airline dropped 9.4 percent to HK$92.8 billion.
Cathay predicted the operating environment in 2017 would remain challenging, and also said premium travel from Hong Kong was below expectations, prompting the airline to sell such tickets at promotional prices to leisure travelers. The carrier, whose passenger yields have been damped by competition from full-service carriers for business seats and budget airlines for the mass market, said it is starting a three-year “corporate transformation” program to improve returns and operational efficiency.
More details in https://www.bloomberg.com/news/articles/...ese-rivals
Cathay Pacific Airways Ltd. reported its first loss in eight years and scrapped plans for a second-half dividend after competition from Chinese airlines and losses from fuel hedging dented earnings. The stock fell the most in seven months.
The net loss totaled HK$575 million ($74 million) in 2016, Hong Kong-based Cathay said in a statement Wednesday. That compares with the median profit estimate of HK$450 million in a Bloomberg News survey of nine analysts. Sales at Asia’s largest international airline dropped 9.4 percent to HK$92.8 billion.
Cathay predicted the operating environment in 2017 would remain challenging, and also said premium travel from Hong Kong was below expectations, prompting the airline to sell such tickets at promotional prices to leisure travelers. The carrier, whose passenger yields have been damped by competition from full-service carriers for business seats and budget airlines for the mass market, said it is starting a three-year “corporate transformation” program to improve returns and operational efficiency.
More details in https://www.bloomberg.com/news/articles/...ese-rivals
Specuvestor: Asset - Business - Structure.