Cathay feels the pain

[codash1099]

Yet another airline under pressure

https://uk.reuters.com/article/uk-cathay-pacific-results-idUKKCN1AW0R4

 

[MEL_Traveller]

Competition from mainland carriers... sure. But maybe they could have a look at their fares? F rtn HKG-LAX is something just shy of AUD20K. Business class about half that. Business class is usually doing ok, but F they might sell one or two seats. Better pricing might see another couple of those F seats filled instead of going to award seats. AA's F fare non-stop to LAX is coming in at AUD9K. 10K premium for CX? Not worth it.

(Yes I know this is a very basic analysis, and CX are well experienced in yield management, but even LH offeres two-tier pricing for F now to generate demand, making F quite attractive if you can lock in your travel in advance).

 

[Melburnian1]

A different article indicated that CX did not want to offer lower and lower fares, but rather rely on quality.

It will be interesting to see if this strategy succeeds. Many (self funded) passengers may just want the lowest fares (particularly travellers from mainland China.)

 

[trippin_the_rift]

Cathay is regularly 2-3x the price of their other full service competitors on the routes I'm flying lately. In fact I wanted to booked CX for a US trip next week but they were FIVE TIMES the price of ANA in biz. Pax load factor seemed equal on both airlines so CX must be sticking with their guns at the top end. Time will tell how it plays out.

 

[kamchatsky]

A different article indicated that CX did not want to offer lower and lower fares, but rather rely on quality.

It will be interesting to see if this strategy succeeds. Many (self funded) passengers may just want the lowest fares (particularly travellers from mainland China.)

Yeah but CX food is getting worse and worse, I think it is harder and harder to justify their premium ...

 

[OZDUCK]

I have only a very limited experience of flying in J but Qatar food and staff on our 2 flights were 100% better than CX on 4 flights with them. Finnairs "contract" Asian staff were as efficient and far friendlier than the CX staff we encountered. Our friends have just returned from a Perth/Hong Kong/Vancouver trip in Y on CX and were very unimpressed with the FA's they encountered - basically got a "sit down, close your blinds and shut up" attitude.

As kamchatsky said a premium fare has to be justified.

 

[MEL_Traveller]

As kamchatsky said a premium fare has to be justified.

It all depends on what the passenger is looking for. CX isn't as interactive and proactive as other asian airlines. On CX they expect you to use the call bell if you need anything. And that suits some. I like the bed (length wise it's hard to beat), the IFE (one of the best) and ultra fast meal service (completed by about an hour after take-off from HKG). And their amenity kits are quite good. The food isn't so good. But again it depends how you expect your time to pass on board. If you're looking for the business class 'experience' CX isn't going to give you the bells and whistles.

 

[kpc]

Flew Cx J from Hkg to Ewr 6 weeks ago....seat, bed, Ife, service, food, wine etc were all very good and enjoyable. The only thing Qf do better is that they hand out PJs in J whereas Cx don't. Ps the 4 of us were travelling on award tickets which is near impossible to get on Qf for longhaul.

 

[Awesom Andy]

Some years ago, when a lot of Chinese could easily spend excessive amounts on luxury, they happily paid the higher fares to fly on CX. Times have now changed. That market has significantly reduced in size, and CX doesn't seem to be adapting. If anything, they are trying to maintain the premium pricing with cost cutting, and regular flyers can certain tell the drop in quality over recent years.

 

[JohnK]

A different article indicated that CX did not want to offer lower and lower fares, but rather rely on quality.

It will be interesting to see if this strategy succeeds. Many (self funded) passengers may just want the lowest fares (particularly travellers from mainland China.)

Qantas has been employing the same strategy recently. Not convinced it's the right way to go.

I was just looking for a HKG-BKK economy return in November. EK is ~AUD250. CX is >AUD500.

 

[ftm]

I wouldn't have said CX was charging much of a premium on their J fares ex Australia. Quite the opposite - very competitive. Might be different ex HK, but not my experience ex AU

 

[erina143]

I have been using skyscanner for syd / lhr in june 2018 in J and CX seems to be best price. Qatar is 1000 more pp.
Q - is Qatar worth the premium?

 

[Melburnian1]

A$1000 is a lot. If it's a choice between the two, go for CX. Travelling via Asia is far more fun than via the Middle East.

Back to the topic, do those AFFers who regularly patronise CX believe it will fight its way out of this 'black hole', or do you foresee that it will continue to suffer losses and go, if I may say so, into some sort of death spiral?

SQ has had variable results but is (at least temporarily) back making a profit. Of the two hubs, one could conclude Changi operates better than Hong Kong, but both face challenges from LCCs and heavy competition on many routes.

 

[MEL_Traveller]

A$1000 is a lot. If it's a choice between the two, go for CX. Travelling via Asia is far more fun than via the Middle East.

Back to the topic, do those AFFers who regularly patronise CX believe it will fight its way out of this 'black hole', or do you foresee that it will continue to suffer losses and go, if I may say so, into some sort of death spiral?

SQ has had variable results but is (at least temporarily) back making a profit. Of the two hubs, one could conclude Changi operates better than Hong Kong, but both face challenges from LCCs and heavy competition on many routes.

This is the first time CX has had back to back losses in its history? And who owns shares in CX? Edited... Air China 29.99%

CX isn't going anywhere.

 

[AIRwin]

Just saw that CX will be raising fuel surcharge wef 1 September:
https://www.cathaypacific.com/cx/en...travel-advisories/fuel-surcharge-updates.html