Cathay Pacific share price down 0.77% after firm warns of “significant” revenue impact

The group warned of “significant impact” on its revenue for August and the months ahead due to fallen travel demand caused by anti-government protests in the country.

Shares of Hong Kong carrier Cathay Pacific slid lower on Thursday after the group warned of “significant impact” on its revenue for August and the months ahead due to fallen travel demand caused by anti-government protests in the country.

In an emailed statement on Wednesday, Cathay’s chief customer officer Ronald Lam said both business and travel into Hong Kong has weakened substantially. Traffic to Hong Kong has started to soften, especially for shorter flights to countries like China and South Korea, he said.

The group’s shares fell 0.77% or HK$0.08, at HK$10.34 on Thursday morning, 10.14am local time.

Year-to-date, Cathay’s shares have fallen by 7%, from HK$11.12 on January 2, 2019.

The airline has been facing boycotts from Chinese state-owned firms after reports said that the group’s airline staff participated in the protests against China’s government.

China’s aviation regulator has demanded for Cathay to prevent airline staff who have shown support for the protests from working on flights to the mainland or routed through Chinese airspace. It also ordered for the handing over of identity information of staff bound to the mainland for security checks.

Cathay had said earlier this month that inbound traffic to Hong Kong was down in July due to the protests and forwarding bookings which fell “double-digit” in percentage.

For the month of July, Cathay said its overall traffic rose 6.7%. The airline had filled 86.1% in seating capacity, compared with 86.7% in the same month a year ago.

Earlier this week Hong Kong leader Carrie Lam offered a ‘platform for dialogue’ to work things out with the public.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.