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Cathay Pacific sees pressure on yields due to intense competition

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Hong Kong's Cathay Pacific Airways Ltd said on Thursday it expected yields, a proxy for airfares, to be under pressure in the coming months as performance in North America and Europe lags expectations due to intense competition.

[BENGALURU] Hong Kong's Cathay Pacific Airways Ltd said on Thursday it expected yields, a proxy for airfares, to be under pressure in the coming months as performance in North America and Europe lags expectations due to intense competition.

Long-haul destinations have performed below expectations, especially on the yield front, the airline said in a statement.

Cathay said last month that its yields had come under "tremendous pressure" due to declining travel demand, especially to and from long-haul destinations.

Meanwhile, geopolitical tensions continued to be a bane for the airline's cargo business, with freight volumes declining 9.1 per cent in June from a year earlier and nearly 6 per cent in the first six months of the year.

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The cargo business is unlikely to see a rebound in volumes in the coming months, Cathay Pacific director, commercial and cargo, Ronald Lam said.

Global airlines in June slashed a widely-watched annual industry profit forecast by 21 per cent as an expanding trade war and higher oil prices compound worries about an overdue industry slowdown.

REUTERS