ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • ZNAA'22
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • IPO: 11 public offers raise Rs 33,000 cr between April-June FY23; 17 more in pipeline
  • Rakesh Jhunjhunwala-backed Akasa Air first commercial flight flagged off by Civil Aviation Minister Jyotiraditya Scindia on this
  • IRDAI to rename grievance redressal mechanism; complaints can be filed in regional languages soon
  • Market next week: Global cues, macro numbers, last batch of earnings to dictate D-Street in holiday-truncated week: Experts
  • Eight of top-10 valued firms add Rs 98,235 cr in m-cap; Infosys, TCS lead gainers
Read in App
Business News » World News

Cathay Pacific says budget airline would serve 'unique market segment'

Higher airfare and cargo rates pushed revenue up 14.2  percent in 2018, helping the airline last week report a swing to a $300 million profit after two years of loss as a turnaround plan helped it cut costs and increase income.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Cathay Pacific says budget airline would serve 'unique market segment'
Cathay Pacific Airways Ltd, in talks to buy low-cost carrier Hong Kong Express Airways, Photo: Reuters

Hong Kong`s Cathay Pacific Airways Ltd, in talks to buy low-cost carrier Hong Kong Express Airways, believes budget airlines have a "unique market segment" it does not capture at present, Chief Executive Rupert Hogg said on Monday. Cathay this month said it was in "active discussions" to acquire the airline controlled by HNA Group Co Ltd.

That would boost revenue and give Cathay access to the growing low-cost travel market at a time when a lack of slots at Hong Kong International Airport has constrained its ability to follow peers like Singapore Airlines Ltd and Qantas Airways Ltd and set up its own budget brand.

"It does interest us," Hogg told Reuters of the budget airline sector during an interview in Singapore. "We watch Singapore Airlines and Scoot; we can see they are trying to get connectivity between them."

He declined to comment on the status of talks to acquire Hong Kong Express but said the low prices offered by budget carriers helped to stimulate new travel demand, making it a "unique market segment".

The potential acquisition comes as Cathay faces a more challenging outlook for revenue growth, according to Hogg. 

Higher airfare and cargo rates pushed revenue up 14.2 percent in 2018, helping the airline last week report a swing to a $300 million profit after two years of loss as a turnaround plan helped it cut costs and increase income.

"We`ve had great revenue growth, both cargo and passenger," he said. "As we look forward we can see the sort of gains in percentage growth terms that we`ve had, by definition it is more difficult to achieve that."

Watch Zee Business video here:

The 18 analysts polled by Refinitiv I/B/E/S on average expect revenue at the airline to grow 3 percent to HK$114.3 billion ($14.56 billion) in 2019.

Hogg said the airline was investing in technology to better handle schedule disruptions and product improvements such as better meals to help drive passenger revenue growth, but the macro-economic environment was weaker than last year.

"There is a lot of uncertainty," he said. "Uncertainty is definitely bad for corporate sentiment and investment and travel. And it is bad for consumer sentiment."

Cargo volume is also weaker than at the same time last year, falling 5.2 percent in January due to a slower Lunar New Year rush than the prior year.
($1 = 7.8495 Hong Kong dollars)
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Cathay Pacific AirwaysAviation
Written By: Reuters
Updated: Mon, Mar 18, 2019
01:10 pm
SINGAPORE, Reuters
RELATED NEWS
Cathay Pacific jobs cut: 6,000 to be axed, says SCMP Cathay Pacific jobs cut: 6,000 to be axed, says SCMP
This airline launches WhatsApp chat customer support service in India - Check number and how to use service This airline launches WhatsApp chat customer support service in India - Check number and how to use service
Cathay Pacific Airways CEO resigns amid Hong Kong protest blowback as more rallies planned Cathay Pacific Airways CEO resigns amid Hong Kong protest blowback as more rallies planned
Hundreds of flights disrupted, cancelled from Hong Kong airport after anti-government protests Hundreds of flights disrupted, cancelled from Hong Kong airport after anti-government protests
Cathay Pacific airfare shock delights passengers; here is why Cathay Pacific airfare shock delights passengers; here is why

LATEST NEWS

Apple iPhone 14: Next-generation series of iPhones may face delay due to this reason

Tejas: Why home-made light combat aircraft are in demand? These countries show interest

Dividend stocks, bonus share, stock split update: These 20 stocks will remain in focus next week | Full List

Commonwealth Games 2022: THESE Two Indian Athletes bag Gold & Silver in Men's Triple Jump

Commonwealth Game 2022 Medal Tally: Indian medal winners at Birmingham CWG after day 9 | Full List Here

Sister's Day 2022: Date, Significance, WhatsApp message, greetings

IPO: 11 public offers raise Rs 33,000 cr between April-June FY23; 17 more in pipeline

India poised to achieve $5 trillion economy dream through ‘Atmanirbhar Bharat’ strategy, says expert

Auto Sector: From beaten-down to top performer of 2022, how this sector turned the tables, what lies ahead – Sunil Damania of MarketsMojo decodes

Has Nifty50 given breakout or this rally short-lived? Strategy and key levels to watch

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV