Cathay Pacific says 'tremendous pressure' on yields as travel demand falls

SINGAPORE (Reuters) - Hong Kong's Cathay Pacific Airways Ltd said on Thursday that yields, a proxy for airfares, have come under "tremendous pressure" due to declining travel demand, especially to and from long-haul destinations.

"Whilst we have seen solid improvement in the first half driven by a good first quarter, our passenger revenue outlook for the coming few months has shown signs of slowdown," Cathay Pacific Director, Commercial and Cargo, Ronald Lam said in a statement alongside the airline's May traffic figures.

The airline said its cargo business continued to be negatively affected by geopolitical tensions that had resulted in dampened market sentiment.

Freight carried declined by 3.9% in May and is down 5% for the first five months of the year, Cathay Pacific said.

Global airlines this month slashed a widely watched annual industry profit forecast by 21% as an expanding trade war and higher oil prices compound worries about an overdue industry slowdown.

(Reporting by Jamie Freed; Editing by Muralikumar Anantharaman)