The Hong Kong carrier, Cathay Pacific, is facing strong competition from emerging Chinese and Middle Eastern airlines. These emerging airlines have differentiated themselves through providing more direct services resulting in travelling via Hong Kong becoming less attractive to passengers.
Sales dropped by 9.4% and passenger yield fell by 9.6%.
The airline themselves have described the reason for their loss as “too many empty seats and competition”.
In response to this loss, the airline has decided to implement a restructuring program which will include seeing many jobs being cut.
Cathay Pacific demonstrates the intensifying competition within the airline industry.