Cathay cautious of year ahead

Cathay Pacific remains cautious for the year ahead, with no clear signs of an upturn.
Tom Wright, general manager South Asia, Middle East and Africa, told Travel Today that 2012 had "definitely not been easy", with the Hong Kong-based airline bracing for more tough times on the back of persistently high fuel costs and a troubled world economy.
"Things are not looking great," he admitted. " Front end corporate travel is down generally worldwide. The message from our bosses is that we need to tighten our belts until we see that front end start to move, because that is the indicator that business deals are being done again."
Cargo makes up a significant portion of Cathay's business, and also acts as a "bell weather" for the industry as a whole, he explained.
"The cargo market always seems to lead a downturn and it seems to also pick up before the passenger side", Wright said. "Are we seeing things start to pick up on the cargo side? No, not really."
The industry's cyclical nature has seen Cathay learn to manage its operations in the "good times" on the assumption that the environment could deteriorate at any given moment, Wright said.
"You've got to be continually looking at your costs, running the most efficient operation because the good times can mask a lot of problems that airlines might have."
Meanwhile, Cathay confirmed it will cut capacity in 2013, although Wright insisted the airline remains committed to keeping its network intact.
He said "trimming" is the "right start" for the carrier in such a difficult operating environment until more fuel efficient aircraft arrive.
"Very sadly, with fuel where it is, the great 747-400s which used to be our mainstay have become unsustainable," he said. "So until we have sufficient long haul aircraft that can do those jobs, we've decided to cut down the long haul and instead increase our regional flights."
The airline, along with subsidiary DragonAir, recently started services to Indian cities Hyderabad and Kolkata and is looking at new destinations in China and across Asia "because we can make money flying those routes".
The airline is also committed to working closely with aircraft manufacturers Boeing and Airbus to enhance fuel efficiency for newer generation aircraft, both for economic and environmental reasons.
Wright said innovation and product development remains a priority despite the high costs involved.
"One of the things we could be cutting is product and innovations because a lot of that stuff is expensive," Wright admitted. "But we need to keep being competitive in terms of our product offering."
He highlighted the long lead times involved in implementing product changes, meaning the carrier cannot afford to wait for an improvement in conditions to evolve.
The airline is in the process of rolling out lie-flat beds across all its regional services.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
Latest News

Cathay Pacific partners with Mott 32 for fine dining at Hong Kong Airport
It certainly beats waiting for our flight at the airport's Burger King.

Japan National Tourism Organization hosts agency events in Perth and Sydney
Trust us, Aussies don't need even more reasons to visit Japan. We're already sold!

Riverside Luxury Cruises names Susie Coughlin as ANZ sales and marketing lead
We wonder if Susie ever imagined how big the river cruise market would get when she started out in the industry.

Cathay Pacific offers rugby fans the chance to fly to Hong Kong
Non rugby fans are also open to being flown to Hong Kong. Just putting it out there...

Ski expert Gary Clark on the real reason everybody is obsessed with ice baths
We all know that the real reason is that it looks good on Instagram.

Marriott International grows Asia Pacific portfolio by 12% with focus on midscale and luxury
The APAC luxury market shows no sign of slowing down.

APT unveils brand-new tour including a visit to remote British island
Forget Big Ben, be the envy of your pals with a trip to places they certainly wouldn't have been.

Air New Zealand addresses engine shortage concerns with aircraft leasing plan
If you're looking for stocks to invest in, aircraft manufacturing looks like a good bet.

Ibis partners with Globetrender to reveal 25 ways Gen Y and Z will travel in 2025
If you can complete the list you'll be going at a rate of one trip every two weeks, and we'd be pretty envious!

Australia bags $1 billion from international business events following post-Covid push
Move over London, New York. The future of business is looking decidedly Aussie.

Virgin Australia wins World’s Best Cabin Crew Award for seventh year running
It's always relaxing to hear the Australian accent on the way home from your trip. It's even better on Virgin!

TravHost launches expert hosting service to transform industry famils
TravHost offers a pioneering service bridging the gap between media professionals, travel agents and tourism organisations, addressing the demand for exceptional famil hosts. Founded by seasoned travel media professionals Fiona Harper and Carolyne Jasinski, TravHost is poised to revolutionise the way tourism organisations and travel companies approach famils. With decades of experience in tourism and […]

Book big and bag a spot of the TTC Tour Brand’s Top Achievers’ Famil
TTC Tour Brands’ Top Achievers Famil incentive is back, rewarding top-selling agents with the chance to embark on an unforgettable trip to a destination that remains a secret – for now. Agents who have sold any Luxury Gold, Insight Vacations, Trafalgar, Costsaver and Contiki, from 1 December 2024 to 14 March 2025, go into the […]

New Zealand International Convention Centre to open in February 2026
The New Zealand International Convention Centre (NZICC) has announced it is opening its doors to New Zealand and world conferences and events in February 2026. The long-awaited NZICC is set to transform New Zealand’s conference and events industry, boosting visitation and the wider economy with its world-class facilities. Located in the heart of Auckland’s CBD, […]

AmaWaterways invites AU/NZ travel trade to An Evening with AmaWaterways events
AmaWaterways has announced the dates of its upcoming An Evening with AmaWaterways events for travel advisors, just over a year after it entered the Australian and New Zealand markets. Dedicated to travel advisors, the events will be held in six cities and will be hosted by AmaWaterways’ regional sales managers, plus feature a presentation from […]

Mooloolaba cruise season boosts Sunshine Coast tourism and trade
Mooloolaba is set to welcome a series of cruise ships through February and March 2025, significantly boosting local businesses and tourism to the Sunshine Coast. Their arrival is expected to create a vibrant atmosphere and provide a substantial economic uplift to the region. Viking Sky kicks off the season on Sunday 8 February, with 930 […]

Little Pete Brewing opens first of its kind open-air bar
Little Pete Brewing has opened a new open-air bar at 543 Step Rd, Langhorne Creek, a must-visit South Australia destination for a drink with a view. The first-of-its-kind open-air bar sits on 8ha, surrounded by vineyards and paddocks, with the Bremer River flowing nearby and framed by majestic ancient river red gums. “We always felt […]

CENTREPIECE is set to make a splash at AIME 2025
CENTREPIECE is set to make a splash at AIME 2025 with a one-of-a-kind activation that showcases their world-class event capabilities to inspire event planners and decision-makers. CENTREPIECE is located in the heart of Melbourne & Olympic Parks, Victoria’s epicentre for live sports and entertainment and home to world-renowned venues including Rod Laver Arena, AAMI Park, […]

NYC Tourism + Conventions announces two exciting new events
NYC Tourism + Conventions has announced ‘NYC Off-Broadway Week 2025’ and ‘Value Family Activities’ events lined up for this year. NYC Off-Broadway Week 2025 2-for-1 ticket sales for this event have begun with this season’s program featuring 29 Off-Broadway performances, including 18 new participants. The twice-yearly program runs from 17 February through 9 March with […]

Engine delays plaguing Air New Zealand as carrier set to suspend Incheon-Auckland route
We never liked being at the back of the queue, and this is a big one to jump.

Australia’s aviation future takes flight: An exclusive with Simon Westaway
As you walk through your next Australian airport, from ABX to YWYY, remember this face, he may be there.

Destination Vancouver brings World Chef Exchange event to Sydney
We are sure that with Mark Best in the kitchen, there was more on offer than poutine and fries.

Jeju wins bid to host 2028 Asia-Pacific Microscopy Conference
The Korea Tourism Organization (KTO) has successfully secured the 14th Asia-Pacific Microscopy Conference (APMC14) for Jeju in November 2028. This was achieved in partnership with the Korean Society of Microscopy, Jeju Special Self-Governing Province, Jeju Convention Bureau, and Jeju International Convention Center. Korea was selected as the final host after strong competition at the 13th […]

Envoyage-hosted National Travel Group joins Luxury Travel Collection
As this market continues to grow, make sure you get along to our own Travel Weekly Luxury Roadshow.

Airports Council International labels Newcastle Airport most sustainable in Australia
Newcastle says it will be the green gateway into Australia, maybe the football team needs some new colours to match.

Vintage Rail Journeys’ unique Bathurst Race’N Rail packages now on sale
You might not get there as fast but you are guaranteed to save on fuel on the way there.

Patricia Piccinini’s skywhales return to tour Australia
These freaked us out when we first saw them, almost as bad as the contents of the fridge after we returned from leave.

David Fraser returns to Accor as VP of operations for Sofitel Pacific
We hope Monsieur Fraser is catching up on his French as he will no doubt be dealing with HQ.

A foodie adventure at Disneyland Resort in California: Snack Attack on the Go
As far as levels of cuteness go, Disneyland Resort's Mickey beignets take the cake or should that be churros.

Minor Hotels unveils Anantara Jewel Bagh Jaipur, its first property in India
Treated like a Raj for a few hundred a night, we like the sound of that. Just don't mention the cricket.

Four Seasons announces new luxury resort and private residences in UAE
These resorts are built on reclaimed land made with sand, fortunately there is plenty of it.

Oceania Cruises sets new standard for onboard dining: one chef for every 10 guests
Oceania Cruises, renowned for The Finest Cuisine at Sea, has set a new standard for onboard dining with an exquisite new menu evolution in The Grand Dining Room. Launching on its newest 1,200-guest ship, Allura, in July 2025, the reimagined menus introduce over 270 brand-new recipes, from curated Signature Eggs Benedict breakfast selection to a chic French […]

MSC Cruises announces MSC World Asia Webinar
Let's hope the words 'You are on mute' will never be uttered ever again.

Legendary Italian hotel, Il San Pietro di Positano, opens new clothing and accessories boutique
Anyone planning a trip to Italy this northern summer should leave room in their Louis Vuitton luggage.

AAT Kings’ NT boost with air credits
AAT Kings really dominates travel in the Top End and news like this only adds fuel to the fire.

Camino Women and Laos’ Khiri Travel announce new mountain trail for Australian women
Responsible tourism starts with one foot in front of the other. This trek sounds like there are a few more steps.