This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

Despite a 5% revenue increase, Cathay Pacific saw a $160 million loss in 2017 due to relentless competition and rising fuel costs. That deficit is nearly double the airline’s losses in 2016.

“Fundamental structural changes within the airline industry continued to create a challenging operating environment for our airline businesses,” Cathay Pacific Chairman John Slosar said.

Cathay’s fuel bill, which accounted for around a third of the company’s expenses, rose 11.3% in 2017, despite fuel hedging contracts designed to minimize price swings. The airline also had to pay a $71 million fine to the European Commission, settling a multi-year case involving a number of air cargo carriers that allegedly colluded to fix fuel and security surcharge rates. Fortunately, the airline’s cargo transport division helped offset some of the costs, with a 19% revenue jump in 2017.

The 2017 numbers mark the airline’s first time experiencing back-to-back losses in the company’s 71-year history. That being said, analysts said the numbers were better than predicted.

The flagship carrier of Hong Kong is in the middle of a three-year restructure that will ultimately save Cathay more than $510 million in cost savings. The corporate reorganization has led to around 600 layoffs so far, as the airline struggles to compete against low-cost carriers as well as mainland Chinese and Middle Eastern airlines encroaching upon the coveted Asia consumer demographic.

“We took decisive action through our transformation program to make our businesses leaner and more agile,” Slosar said. “Our focus in 2017 was on building the right foundations, structure and strategy to improve revenue and to better contain costs.”

Featured image courtesy of Cathay Pacific

American Express® Gold Card

With some great bonus categories, the American Express Gold Card has a lot going for it. The card offers 4x points at US restaurants, at US supermarkets (up to $25,000; then 1x), and 3x points on flights booked directly with airlines or through amextravel.com. It is currently offering a welcome bonus of 35,000 bonus points after you spend $2,000 in the first three months.

Apply Now
More Things to Know
  • Earn 35,000 Membership Rewards® Points after you spend $2,000 on eligible purchases with your new Card within the first 3 months.
  • Earn 4X Membership Rewards® points at U.S. restaurants. Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X).
  • Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
  • Earn up to $10 in statement credits monthly when you pay with The Gold Card at Grubhub, Seamless, The Cheesecake Factory, Shake Shack, and Ruth's Chris Steak House. This is an annual savings of up to $120. Enrollment required.
  • $100 Airline Fee Credit: up to $100 in statement credits per calendar year for incidental fees at one selected qualifying airline.
  • Choose to carry a balance with interest on eligible charges of $100 or more.
  • No Foreign Transaction Fees.
  • Annual Fee is $250.
  • Terms apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
See Rates & Fees
Annual Fee
$250
Balance Transfer Fee
See Terms
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.