Mar 16, 2017 08:11 AM EDT
Cathay Pacific Airways reports its first full-year loss, on Wednesday, since the 2008 global financial crisis. The poor results were due to overcapacity, lack of seats and competition from mainland Chinese carriers.
Shares of Hong Kong's flag carrier dipped almost seven percent following the news. Cathay posted a net loss of HK$575 million for 2016, which was down from an HK$6 billion profit from the previous year. This is the third time the company posted a full-year loss since it was founded in 1946.
Cathay Pacific says the results were brought by falling demands for premium class seats on long-haul routes. It is also facing fierce rivalry from mainland Chinese and Middle Eastern airlines that are expanding in the region. Carriers such as Air China and China Eastern offers direct services from the mainland, which makes it convenient for passengers to travel in their country than fly to Hong Kong.
The airline has typically held up its premium services but business has faltered because of mainland carriers as well as budget airlines luring away passengers with cheap fares. Accordingly, intense competition contributes to sales dropping by 9.4 percent. Cathay Pacific acknowledges the competitive landscape and plans for a review of its business. The airline sets on cutting jobs and consider shifting some flights to its short-haul arm as part of its three-year program.
"Our organization will become leaner," Cathay Pacific said in a statement to the Hong Kong exchange on Wednesday. The group's revenue dropped more than nine percent to HK$92.75 billion while passenger yields, which refers to the average fare paid per mile per customer, tumbled 9.2 percent to $0.54. In addition, Cathay also failed to take advantage of the full benefit of low fuel costs brought on by weak crude oil prices. It plans to cut costs in the long term by buying new and more fuel-efficient aircraft.
Cathay chair John Slosar affirms the difficulties in 2016 due to many factors that adversely affected their performance. Although several steps are in progress, Slosar expects the operating environment in 2017 to remain challenging.
People who travel for business two weeks or more a month report more symptoms of anxiety and depression and are more likely to smoke, be sedentary and report trouble sleeping than those who travel one to six nights a month, according to a latest study conducted by researchers at Columbia University's Mailman School of Public Health and City University of New York.
President Trump said Friday he is declaring a national emergency on the southern border, tapping into executive powers in a bid to divert billions toward construction of a wall even as he plans to sign a funding package that includes just $1.4 billion for border security.
Amazon's decision to abandon plans to build a new campus in Long Island City, Queens, has drawn cheers from several politicians, community organizers and other locals opposed to the expansion.
One of the hottest topics at the World Economic Forum in Davos, Switzerland has been Alexandria Ocasio-Cortez's proposed 70% marginal tax rate on all income above $10 million.
In recent decades, Europe has experienced a downward trend in the annual number of deaths. Not only was this trend not arrested by the economic recession that started in 2008, in fact, the rate of decline increased during the recession years.
Discovering that your new designer handbag or gold watch is a fake is costly and annoying, and counterfeit medical devices or drugs could have even more serious consequences. But seemingly as soon as manufacturers develop a new method to ensure product authenticity, counterfeiters find a way to outsmart it. Now, researchers have created an "unclonable" tag that can never be replicated, even by the manufacturer. They report their results in ACS Applied Materials & Interfaces.
The traditional model for setting auto insurance premiums has been to base rates on the motorist's driving history, age, gender and even marital status (in some states). Thanks to new technological options, insurance companies, and motorists have started to work together to give the insurance companies access to better data on an individual driver's risk level, and give the same driver a sense of greater control over how much he or she will pay in insurance premiums.
Consumer brands have long used old-fashioned focus groups, interviews and surveys to best gauge consumer wants, desires and needs as part of processes that range from product development, to marketing and sales. As machine learning and artificial intelligence (AI) have emerged, there is an increasing interest in the ability to harness these solutions to save time and money, and to yield more reliable consumer insights.