Cathay Pacific Sees Major Profit Turn Around in 2018
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. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Cathay Pacific is finally seeing an increase in profit after two years of financial loss.
The Hong Kong-based carrier said Wednesday that a preliminary review of the unaudited consolidated management accounts show profits for 2018 to be 2.3 billion HKD ($293 million USD)— a major increase compared to last year’s report.
In 2017, Cathay saw a loss of about $160 million USD in profits— which was nearly double the amount that the airline lost the year before. The airline attributed most of these losses to an 11.3% increase in its already pricey fuel bill, which accounted for about a third of the company’s expenses. However, as One Mile at a Time points out, other issues stemmed from more competition and too much capacity on key routes and aircraft that are not efficiently configured to maximize revenue.
As for why the staggering increase in profits occurred last year, Cathay highlighted a three-year company restructuring that focused on capacity growth, customer service and management of revenue for its passenger business. This process has led to the airline cutting some of its routes, reducing its workforce, and an ongoing mass reconfiguration project that will transform 68 of its 777s to 10-across seating in economy. They’d also taken on new leadership under CEO Rupert Hogg in mid-2017.
Cathay plans on releasing a fully consolidated review of its 2018 profits in March.
Featured image by DALE DE LA REY via Getty.
WELCOME OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.