Cathay Pacific Premium Cabin Sales Suffer as Banks Cut Jobs
By Geetha Pillai | January 17, 2013 7:25 PM EST
Cathay Pacific, the Hong Kong-based carrier which is Asia's biggest airline, reported weaker-than-expected sales in premium cabins in December due to slump in demand as the top banks announced plans to reduce their worldwide headcounts.
"The overall performance in the premium cabins was weaker than expected. Passenger demand held up in the economy cabin," the company said in its stock market filing, according to a Bloomberg report.
The decline in travel demand was reported amid the airline's efforts to boost sales with promotional offers for its business and premium economy class passengers.
However, Cathay Pacific and its wholly owned subsidiary Dragonair carried 2.52 million passengers in December, a 2.5 percent rise compared to the same period a year ago. Load factor rose by 80.7 percent as the company restructured the frequencies on some long-haul routes.
Shares of Cathay Pacific declined nearly 1.5 percent to HK$14.80 in Hang Seng.
Analysts suggest that the spate of premium job culls announced by major financial firms have played a key role in Cathay Pacific's sales slump. In the latest announcement, Morgan Stanley said it would slash 1,600 jobs, the majority of them concentrated in the firm's high-earning investment wing, which deals with big acquisitions and mergers as well as trades in bonds and securities on behalf of clients.
The redundancies are expected to include some of its highly paid jobs in the level of managing directors and executive directors, apart from employees from the sales team, support staffs and traders.
The new job cuts would be on top of the 4,000 job cull already announced by the bank in 2012.
While Citigroup has announced that it will slash 11,000 jobs, UBS has pledged to eliminate 10,000 jobs to save about $1bn in annual expenses.
To contact the editor, e-mail:
Most Popular Slideshows
- After Win Over Maidana, Mayweather Says He Is Prepared To Negotiate A Fight With Pacquiao
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
- Kendall Jenner Could Be Next Victoria's Secret Angel [PHOTOS]
Join the Conversation
- Ebola Update: Death Toll Reaches 2,461; US$1B Is Needed To Fight It, Says UN
- BC Teachers’ Strike Reaches Tentative Deal With Government, Date of Class Resumptions Still Not Sure
- West Africa Ebola Epidemic To Last 12-18 Months More
- Security for Pope Francis' Albania Trip At Status Quo, Won’t Be Reinforced Despite ISIS Threat – Vatican
- Air France Pilots’ Strike: Only 40% of Scheduled Wednesday Flights Will Operate
- iOS 8 Release Date Of Sept 17 Has Arrived: Update Begins At 10AM Pacific Time, Upgrade Your iDevices With iOS 7.1.2 First To Install iOS 8
- Pregnant Kate Middleton May Call Off Malta Trip Due To Sickness: Royal Couple Will Move To Anmer Hall Residence
- Why Samsung Galaxy S5 Is Not The Best Smartphone To Purchase Now? If You Still Want To, Wait For A Month To Get It Cheap
- Apple iPad Air 2, iPad Mini 3 October Release Date Roundup: Freshly Leaked Protective Case Debuts Unique Vent Alongside Camera
- Ukraine Crisis: Poland Denies Supplying Weapons To Kiev
- Google Nexus 8 Release Date Countdown Begins Oct 8: 8 Killer Specs and Features to Expect
- Canadian IS Jihadist Who Wants to ‘Play Soccer’ with Heads of US Decapitated Soldiers