Cathay Pacific cuts capacity to restore profitability
BEIJING (REUTERS) - Cathay Pacific Airways Ltd , the world's largest international air cargo carrier, is scaling back seating capacity on some long-haul routes to offset declines in its air freight business and try to return to profitability.
Cathay, which competes in global markets with carriers such as Singapore Airlines Ltd and Korean Air Lines Co Ltd, retired three Boeing 747 jets in the first six months this year and replaced them with two smaller but more fuel efficient B777 planes, as the company squeezes more income from its North American passenger routes, its biggest market.
Hong Kong's flagship airline was the only one of Asia's top 10 carriers to cut available seat kilometres - a measure of passenger capacity - this year, down 4.8 per cent in June from a year earlier, according to Thomson Reuters data. Garuda Indonesia Tbk led the gains with a jump of 16.5 per cent year-on-year in April, the most recent month for which the data was available.
Cathay also has been fine-tuning its seating arrangements on United States (US) flights to improve passenger yields, a gauge of profitability, according to Mr Geoffrey Cheng, an analyst at securities brokerage BOCOM International.