Cathay Pacific Airways posts first annual loss in decade

AP News
|
Posted: Mar 15, 2017 2:05 AM

HONG KONG (AP) — Hong Kong's Cathay Pacific Airways has posted its first annual loss in a decade, which it blames on tough competition from rival airlines, slowing Chinese economic growth and a stronger currency.

The airline said Wednesday it lost 575 million Hong Kong dollars ($74 million) in 2016 compared with a HK$6 billion profit the year before.

The last time Cathay, Hong Kong's biggest airline, reported a loss was in 2008.

Revenue fell 9.4 percent to HK$92.7 billion.

The company said "intense and increasing competition with other airlines was the most important factor" affecting its financial results.

It also was buffeted by economic factors including China's slowdown, a fall in tourists visiting Hong Kong and a stronger Hong Kong dollar, which reduces profits it brings back from other countries.