Cathay Pacific Shares Jump

[Dragon69]

Cathay Pacific shares jump on improving passenger yields
Reuters Staff2 Min Read
HONG KONG/SINGAPORE (Reuters) - Shares in Hong Kong’s Cathay Pacific Airways Ltd (0293.HK) climbed 4 percent on Thursday after the company said airfare prices were continuing to recover after a long period of decline.

FILE PHOTO: A Cathay Pacific Airways passenger plane flies, in Hong Kong, China August 15, 2017. REUTERS/Tyrone Siu/File Photo
The carrier on Wednesday posted a smaller-than-expected annual loss of HK$1.26 billion ($160 million) due to a rebound in the cargo market, a slower pace of decline in ticket prices and lower fuel hedging losses.

In presentation materials for its analysts call, Cathay Pacific said passenger yields, a proxy for airfares, had fallen by only 1.5 percent in the second half of 2017, compared to a 5.2 percent decline in the first half.

“Passenger yields continue to improve,” Cathay Pacific said.

Rivals Singapore Airlines (SIAL.SI) and Qantas Airways (QAN.AX) also reported smaller yield declines in the second half of last year as fuel prices rose.

BOCOM International Research analyst Geoffrey Cheng said Cathay’s management team was confident about 2018, with the outlook brighter for both passenger and cargo operations.

He raised his price target on the stock to HK$15.50 from HK$14.50. Shares reached HK$14.38, the highest level in two and a half years, during morning trade on Thursday.

Reporting by Donny Kwok and Jamie Freed; Editing by Edwina Gibbs

The sky isn't falling after all.

[Trafalgar]

Only for the employees....

[Killaroo]

Yields 'less bad' than expected....I doubt thats really the reason for any share price recovery. More likely the takeover sharks smell blood in the water.
Re-structuring and cuts going through fine without a whimper from the staff. Evidence of some improvement in profitability, with more medicine to come.
Probably starts to look like a good cheap buy for a cashed up Mainland group.

[Arfur Dent]

"Contract compliance", "Training Bans", and all such anti Cathay activities by disillusioned Flying Staff mean nothing to "The Market". "Reducing costs" (especially Staff costs) are the Holy Grail and the market reacts immediately and positively to reductions in Pilot COS that help reduce costs. Enormous fuel hedging losses and bizarre explanation for same, do not seem to negatively effect the SP. Beats the hell out of me but I do think the inertia this share seems to have and the BS that CX execs seem to get away with at AGM/EGMs will run out and then we'll have the reckoning that Slosar and his kind so richly deserve. Please hurry as I can't wait for "justice to be done".
One can but dream........

[Frogman1484]

The reason it is going up is because the big institutions know the fuel hedge comes to an end mid 2018 and that they will be making a big profit again.

[crwkunt roll]

The reason it is going up is because the big institutions know the fuel hedge comes to an end mid 2018 and that they will be making a big profit again.
Seems like lala land here if CX stock is the only one going up.

[Farman Biplane]

Who cares why share prices go up or down? If you didn’t get into 293 at $12 recently then it is a missed opportunity. Got to recover that 13th month payment somehow.

It has been stated repeatedly that the hedge gamble effect will end by 2019, so what did you expect?

[Loopdeloop]

Exactly right Farman. We all knew what was going to happen & if you’re a CX pilot & didn’t buy any shares in the last 6 months then you’re a bit of a numpty!

[raven11]

:ugh::ugh:
Damn....

[jetjockey696]

https://www.cnbc.com/video/2018/03/14/the-worst-is-over-for-cathay-pacific-says-analyst.html

[Trafalgar]

And that is why any talk of concessions is now off the table. The only talks must focus on overdue pay rises, increases to HKPA, lock-in of ARAPA and other improvements. Otherwise, the exodus of crew will continue (and is already probably unstoppable).

[gulliBell]

Who cares why share prices go up or down?..

I don't care why. I got in at $20 so many years ago, I'm just waiting for it to get back to $20 so I can bail out.

[BlunderBus]

The stock will rise towards a $16 takeover bid price and the parent company will exit.
They’re asset stripping as we speak.
Mark my words. I give it 12 months max

[Farman Biplane]

Gullibell, sitting on losing stocks is a bad thing. I hope you learnt the lesson and now use unemotional automatic trailing ratchet stop loss protection?
Don’t worry, you will get your 20 bucks back, eventually......

[gulliBell]

Gullibell, sitting on losing stocks is a bad thing. I hope you learnt the lesson and now use unemotional automatic trailing ratchet stop loss protection?
Don’t worry, you will get your 20 bucks back, eventually......

Cathay Pacific Marco Polo Club emailed me, ask me why I haven't been flying CX recently. I said, I'm not happy sitting in the back with unhappy pilots sitting up front. No 13th month, etc etc. Not that they're any more likely to listen to me than their own pilots.

Sitting on X number of CX shares @ $20 I still own X number of shares. I haven't realized any loss/profit until I sell them. Basically I used to get one free flight per year from the share dividends so I didn't mind so much if they were down a little bit. Now the dividends hardly cover a cheeseburger and coke at McDonalds at CLK.

And I'm holding PetroChina at almost $17. Last I saw they were about $5 and I'm down about $1M. Makes CX look like the shareholder golden money tree, and I should be greatful for one free cheeseburger and coke every year.

[gulliBell]

.

..GulliiBell, sounds like you need a better way to decide on investment choices, and a whole different strategy.

Yeah, it's called retirement and a government pension. I miss nothing about working and flying for a living any more. A few fond memories along the way...landing long at CLK in my first go on the CX 747-400 sim, smoking the brakes and running off the end of the runway was a lot of fun!

[Farman Biplane]

Would you like fries with that?

[Cpt. Underpants]

Yes, Blunder, asset stripping as in buying dozens and dozens of new planes that are arriving over the next many years....I see.

Correction

LEASINGnot buying. CX owns very little.

[BlunderBus]

Curtain do you think placing a spot order for aircraft assures future stability? Google it... Monarch is the latest example .. large Boeing orders now nullified. Check Ansett, Pan Am, Braniff, Continental, Us Air, TWA, et al... They mean **** and an be sold or relinquished at the drop of a hat.
Keep your faith if you so wish but cast your mind back to the outright lies, attacks on staff and general buggery of staff since the boxer rebellion!!! The writing is on the wall. Tell me exactly what it is we now own?

[BlunderBus]

I’m
Merely stating in my opinion the company is attempting to spruce up the pig for a resale. I think the current slavedrivers would willingly grab a decent offer from the sandpit or another ‘kingboard’ (in it for the long haul) offer.
I mean really WHO could possibly survive on a MERE 7.5% return annually ?!!!

[azhkman]

So will Air China change the logo, livery, and signage, with the re-brand to Air China HK? On the plus side, once it is Air China HK, there would no longer be a need to keep HX from going under with HNA.

[Maxfli]

Aggregate losses on fuel hedging total HKD $14.86b (US$1.893b) for 2016 and 2017.

[Oasis]

I wonder how it stacks up to what happened during SARS.

[Maxfli]

I wonder how it stacks up to what happened during SARS.

2003 H1 loss was HKD$ 1.24b (then USD$159m).

SARS loss equates to 8.4% of of Fuel Hedging loss, on a direct numeric comparison without indexation (15 years ago).

Call it 10% :ugh:

https://www.wsj.com/articles/SB106014765860149100

[Starbear]

Thank goodness they implemented Time to Win 15 months ago, it could have been a disaster but for such innovative steps taken by the leadership, such as those outlined below:

Hong Kong?s Cathay Pacific looks to food revamp and new lounge to help boost flagging fortunes | South China Morning Post (http://www.scmp.com/news/hong-kong/economy/article/2138440/hong-kongs-cathay-pacific-looks-food-revamp-and-new-lounge)

[Trafalgar]

Stunning management genius at play. I am in awe at these industry leading changes:rolleyes:. Almost as clever as spending a couple of years ago untold millions to 'rebrand' the airline resulting in the aircraft looking.....well, almost exactly as they did before (but we now have a small 'c' and a small 'p'. :D). We have the BEST management in the business. :yuk:

[Adambrau]

Curtain do you think placing a spot order for aircraft assures future stability? Google it... Monarch is the latest example .. large Boeing orders now nullified. Check Ansett, Pan Am, Braniff, Continental, Us Air, TWA, et al... They mean **** and an be sold or relinquished at the drop of a hat.
Keep your faith if you so wish but cast your mind back to the outright lies, attacks on staff and general buggery of staff since the boxer rebellion!!! The writing is on the wall. Tell me exactly what it is we now own?

Nitpicking but US Airways is now American Airlines and the largest carrier in the world. And Continental is now almost United Airlines. Of course all employees lost their pensions post 9/11 and changes to Chapter 11 bankruptcy laws. But in the case of Pan Am and TWA, those are stories of legends who's employees got the ultimate shaft. Best wishes for all CX frontline staff, it hurts badly to fall from a once high place, especially when it is a long and painful drop.