Cathay Pacific Warns On Business Outlook

Cathay Pacific Airways expects its second half results to be worse than forecast in its interim report.

The Hong Kong full service airline said its business outlook had deteriorated, blaming overcapacity and strong competition for revenue shortfalls and heavy pressure on yields.

“We are engaged in a critical review of our business, the goal of which is to improve revenues and to reduce costs… The review will consider all options for improving efficiency and productivity”, Cathay said in a statement to the Hong Kong stock exchange.

Cathay had said in the interim report that it expected results for the second half of 2016 to be better than the first.

Cathay’s first half profit dropped 82 percent to HKD$353 million (USD$45.5 million).