Cathay Pacific posts worst first-half loss in at least 20 years
 

CX H1
 

B-O-H-I-C-A

Any sign that this was a one off ? Are future results likely to show improvement or more losses ?

The problems with HKG being an expensive place to be based, Chinese airlines being either better or cheaper alternatives for your main customer demographic and Middle East airlines taking your long haul connecting passengers seem to be adding up to a perfect storm.

CX H1
 

Outlook similar...........

Cathay Pacific 1H losses deepen on competition, fuel costs | Airline Financials content from ATWOnline

[QUOTE=Metro man;9864227]Any sign that this was a one off ? Are future results likely to show improvement or more losses ?


3.2 billion fuel hedge loss.
4.0 billion cash hedge loss.
0.5 billion cartel fine.

So no, not one off losses.




Incompetence is perpetual at hello kitty city.

No doubt they'll bounce back just like QF did after it posted a significant lose a couple of years ago.

BOHICA, good chance I'd say. Never let a disaster go to waste.

Not much I can do about it except save a little more of my wage as a contingency.

All other initiatives have been taken away from me by fiddling, bumbling managers who'd best be sent off to a LCC on an exchange program to open their minds !

On the contrary, PW. They seem to be one-off losses that keep recurring!

Even if the whole airline worked for free, we would still lose money ...its all about the fuel hedge and fines!

Sadly, its the CX model that worked 15 years ago, that has never synthesised into anything that the slowly emerging 'cleaner "LCC models now work around, that is the real reason for this mess. The appalling necrosis in management and the absolute disregard to listen to its top echelon employees..the promotion of imbecilic head nodders and the emergence of a stupendous and ridiculous HR dept..no..not peoples..HR..that has shaped this airline into the loss making fiasco that it now is. And the theatre of espousing how we are all important to the success of the company..what utter BS… do they really think we believe this rhetoric???..not even the contract 2 year renewable engineers believe this rubbish..and yes..send some of these so called "managers"..most of whom couldn't manage anything out of a paper bag..send them to a LCC as suggested..but sadly..I don't think even Tiger Air would accept a CV with a CX endorsement now..

Time to activate that back-up plan

The toxic fuel hedges run out end 2018, so 2019 CX will see a 'rebound' and the 3 year transformation plan can be declared a huge success

Oh great, then they can all congratulate each other and hand out big bonuses again.

What great leadership...

China Air and Cathay Merger
 

Was I the only one that watched Corrine Png mention a merger was likely sooner or later?

Well thats half the thing, at true LCC models they dont have managers. They have a ceo, a few planning type office staff, and front line employees.
Thats why they are cheap

I'm not a shareholder in CPA but if I was, I'd be wanting to know who exactly is responsible for this debacle and I'd want them out of the Company PDQ!

Back then (15 years ago) cathay targetted debt level of 40%, to be prudent and make sure could survive issues (SARS, financial crises etc)

Now at over 100%. Winning!

Stolen from a customer site:

A few numbers from recent results:

Shareholder Funds at June 30 $55,365M

Fuel Gambling Losses 2017 YTD $3,237M
2016 $8,656M
2015 $8,474M
2014 $ 911M

TOTAL $21,078M About USD2.7B, B not M

So the total gambling losses represent 38% of current shareholder funds. WOW!

2017 YTD Inflight Services and Expenses $2,417M

And this year they are only willing to spend 75% of their gambling losses taking care of all of us during our flights. No wonder EVERYTHING is being pared back.

And it will continue. They have committed to buy over 50% of their current fuel purchase volumes for the balance of 2017 for Brent at $90/Bbl, and over 45% of estimated 2018 volumes at $80/Bbl.

If this was not approved by the Directors, they were derelict in their duties. Either way HEADS SHOULD ROLL. And that should start at the very top. Instead they want to recover the losses from passengers and staff. Swire must be ruled by senility.

Are we all going to believe that Cx hedged fuel at a price that would bring down the company with major losses?

I am sure the forensic accountant that we are paying big dollars for will sort it all out for us!