Cathay Pacific warns of protests' impact

[reader]

Excerpted from the South China Morning Post

Cathay Pacific announces profits of HK$1.35 billion for first six months of 2019 but warns Hong Kong protests have affected inbound bookings

Cathay Pacific Airways has beaten profit expectations with earnings of HK$1.35 billion (US$172 million) for the first six months of the year, the airline announced on Wednesday, but warned unrest in Hong Kong had hit inbound bookings.

Aided by a HK$1.2 billion fall in fuel costs and overall expenses, CP matched its highest profit expectations, the airline told the city’s stock exchange.

The company delivered its best revenue figures on record for the January to June period, of HK$53.5 billion, up 0.9 per cent.

Revealing its interim results, the airline’s chairman John Slosar offered a modestly positive outlook for the second half of the year, stating the company’s performance would be better in the second half despite the US-China trade war and civil unrest in Hong Kong discouraging tourists.

Some 17.48 million people flew with Cathay in the first half of this year. That is 776,000 more than during the same period in 2018, boosting revenue thanks to the use of larger aircraft to fly more passengers and refitting existing planes with extra seats in economy class.

The business carried 5.7 per cent less freight in the first half year-on-year, in a strong sign that the US-China trade war had hurt the airline’s once resurgent cargo business.

https://www.scmp.com/news/hong-kong/transport/article/3021752/cathay-pacific-announces-profits-hk135-billion-first-six

[fedssocr]

I have plans to spend a few days in HK in the autumn after Taipei Pride. So I'm keeping a close eye on what's going on. The US State Dept just raised their warning level. I might just stay in Taiwan and fly out the morning of my flight from HKG to make the connection

[reader]

From Bangkok Post

Qatar Airways eyes bigger stake in Cathay Pacific

UALA LUMPUR: Qatar Airways has full confidence in Cathay Pacific Airways Ltd and will increase its 10% stake in the Hong Kong carrier if it has any opportunity to do so, the Qatari airline's chief executive said on Tuesday.

"Cathay Pacific is there to stay, and to expand and to serve the people of both Hong Kong and China, as Hong Kong is an integral part of mainland China," Qatar Airways' Chief Executive Akbar al-Baker said. "We have no concern about the brand, we have no concern on the viability of the airline."

He was speaking at a function to announce the launch of flights from Doha to the Malaysian island of Langkawi from October.

The Hong Kong airline's other major shareholders are Swire Pacific Ltd, which has a 45% stake and management rights, and Air China Ltd, with 30%.

Qatar bought its stake in 2017 and has previously expressed interest in increasing it, although it has said the tight share register makes that difficult.

Analysts have said Air China could look to increase its stake in Cathay in the future as China tightens its grip over the former British colony.

Al-Baker, however, said his airline is not interested in buying Malaysia Airlines, at a time when sovereign wealth fund Khazanah Nasional Bhd is considering offers for the national carrier.

Qatar Airways is also not interested in buying Air India in an upcoming government sales process, he said. 

https://www.bangkokpost.com/business/1737751/qatar-airways-eyes-bigger-stake-in-cathay-pacific

[PeterRS]

I notice in that article that Qatar is starting flights into Langkawi. I wonder how long these will remain on the schedule. Its aggressive expansion into Thailand in recent years has not exactly been a success. Non-stop flights from Doha into Chiang Mai, U-Tapao and Krabi were all announced with big fanfare. U-Tapao and Krabi bit the dust. Now it only flies to Chiang Mai but with a stop in Bangkok.

And those flights to Langkawi are also not non-stop. They have what is called a technical stop in Penang! I wonder what a technical stop means. Penang is just 108 kms away from Langkawi. Since the aircraft is a 787 there is zero need for a technical stop. On further checking, the Doha/Penang flight is a scheduled route. So "technical stop" is inaccurate and meaningless. It is a one-step flight!