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.
BRG International Founder Matias Alem had recognized this fact for a few years. So he remodeled his real estate brokerage into something completely new to solve the problem for his jet-setting international client base.
Ryan Early, hailed as 'Farmer Ryan' among sustainable agriculture experts, is a busy man. He has a laundry list of companies to his name, including Blue-Green Ventures, the company behind the revolutionary product, Blue MagicTM, a non-toxic and eco-sustainable pest preventative product using his patented BiomeMax TM Pheromonal Replication Technology.
Investor, financier, and expert in both cryptocurrencies and blockchain technology, Joy Mbanugo is the go-to in the sector. She has vast experience and knowledge across tax services, auditing, business operations, financial analysis, capital markets, and other specializations.
When Nick Collins was just 14 years old, he started his first business, which included around-the-clock phone calls and numerous questions from his parents. In fact, he began building his stout portfolio in the seventh grade by doing web design, incorporating creative content with brand strategies and plugging in a then-fledgling tech Flash.
Barry Gabster is the founder of InitiateU and is a leading proponent of the marketing mailer revolution, having already taken his company to 10x growth in 2021, alone. In fact, the exponential growth has seen the company rise from $800K-$8.5M just on word-of-mouth referrals.
If you think that the micro accounts are useful only for beginners who may not be able to cope with the fast dynamics of changing quotes on trading platforms, then this is not so. Professionalism grows out of these cent accounts.
Journalists love their jobs because they get to interact with people from all sorts of backgrounds and expertises, then turn around and share their knowledge with the world.
As the metaverse takes over more of our digital lives, the commoditization of all aspects of our virtual beings becomes more and more of a reality.
Rustam Gilfanov is a famous IT businessman, a founder of a large IT company, and a partner of the LongeVC Fund.