Cathay Pacific Group is cutting capacity plans as traffic
has declined dramatically amid protests in Hong Kong.
Passenger numbers decreased 11.3% year over year in August;
inbound traffic to Hong Kong dropped 38%, and outbound traffic went down 12%,
the carrier reported.
"August was an incredibly challenging month, both for
Cathay Pacific and for Hong Kong … and we don't anticipate September being any
less difficult," said chief customer and commercial officer Ronald Lam. Demand
for premium-class travel declined more than leisure demand, he added.
With a "significant decline in forward bookings for the
remainder of the year," Cathay Pacific has adjusted its capacity plans for
the winter season, which runs from the end of October to the end of March.
Previously, the carrier planned winter capacity to grow more than 6%. Now, it
will contract slightly, according to Lam. Even so, the group is moving forward
with plans for new first and business class products and a new dining product
for its economy cabins, he said.
Cathay also has lost some of its top leadership in recent
weeks, including CEO Rupert Hogg and chairman
John Slosar, who will step down in November.
Source: Business Travel News