Irrespective of fuel hedging, if you look at the management report Cathay yields are under pressure in pretty much every market: Australasia, Europe, Canada, the US...http://www.hkexnews.hk/listedco/listcon ... 816199.pdf
Cathay faces major structural problems. Given its relations with partners are at best ambivalent, a hefty dose of humility is required. BA, Iberia, and Qantas have all had to go through painful adjustment and are now thriving.
We introduced a four-times-weekly services to Tel Aviv in March. The service, which is operated by Airbus A350-900 aircraft, has been very well received in all classes. We will put on extra flights to meet seasonal demand on this route from September to November 2017. We introduced seasonal services to Barcelona (July to October 2017) and will introduce seasonal services to Christchurch (December 2017 to February 2018). These services will be operated by Airbus A350-900 aircraft.
We sold premium class tickets on a promotional basis to non-corporate customers.
Our weekly “fanfares” promotions in Hong Kong demonstrate our commitment to offering good-value fares in our home market.
Demand over the Chinese New Year holiday was strong, but yield was under pressure.
The performance of our Southwest Pacific routes was below expectations. Demand on Southwest Pacific routes was weak. Increased capacity from Mainland China, Hong Kong and Australian carriers put pressure on yield and the number of transit passengers.
Yield on routes between Hong Kong and Mainland China and Southeast Asia was under pressure because of increased competition, particularly from low-cost carriers.
Demand on European routes grew, but from a low base, reflecting security concerns in the early part of 2016.
Demand for travel to and from Madrid grew. Bookings for our seasonal summer services to Barcelona have been strong.
Demand for travel to the United States was weak.
Increased competition on routes to Canada is putting increased pressure on yield, especially during seasonally weak periods.
In March 2017, we increased the frequency of our services to Boston (from four flights per week to daily) and Vancouver (from 14 to 17 flights per week).
To meet seasonal demand, we increased the frequency of our service to Toronto by four flights per week between June and August 2017 (making this a twice-daily service).
From October 2017, we will increase the frequency of our service to San Francisco to three-times-daily (by adding four flights per week) and will reduce the frequency of our service to Los Angeles from 28 to 21 flights
The load factor on the route to London Gatwick, introduced in 2016, was high, but revenue was adversely affected by the weakness of sterling.
In June 2017, we increased the frequency of our services to London Gatwick (from four flights per week to daily) and Manchester (from four to five flights per week). The Manchester service is now operated by Airbus A350-900 aircraft. From December 2017, the frequency of the Manchester service will be increased to daily.
From October 2017, the frequency of our service to Madrid will be increased from four to five flights per week.
From December 2017, the frequency of our service to Paris will be increased from 10 to 11 flights per week.
From July 2017, our service to Adelaide became five flights per week year-round.
From October 2017 to March 2018, we will replace our current four-times-weekly one-stop service to Brisbane via Cairns with direct flights to both cities. The Brisbane frequency will be 11 flights per week. The Cairns frequency will be three flights per week.
In March 2017, we increased capacity on our daily non-stop flight to Brisbane by using Airbus A350-900 aircraft.
In March 2017, we increased capacity on our route to Melbourne. The route used to be operated only by Airbus A330-300 aircraft. One of the three daily flights is now operated by Boeing 777-300ER aircraft, one
by Airbus A350-900 aircraft and one by Airbus A330-300 aircraft.
The performance of our routes to Thailand was satisfactory.
In July 2017, we increased the frequency of our services to Hanoi (from 10 to 12 flights per week) and Ho Chi Minh City (from 18 to 19 flights per week).
Demand for travel to Northeast Asia was strong in the early part of 2017, but political tensions between Mainland China and South Korea in the second quarter affected demand for travel to South Korea.
We stopped flying to Riyadh in March 2017.
In October 2017, we will suspend services between Taipei and Fukuoka and will introduce a second daily flight between Taipei and Tokyo Narita.
Cathay Dragon now operates the four daily flights to Kuala Lumpur which were previously operated by Cathay Pacific.
Cathay Dragon’s service to Tokyo Haneda will be suspended from October 2017.