0293.HK - Cathay Pacific Airways Limited

HKSE - HKSE Delayed price. Currency in HKD
8.120
-0.190 (-2.29%)
At close: 4:08PM HKT
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Previous close8.310
Open8.400
Bid8.120 x 0
Ask8.150 x 0
Day's range8.100 - 8.500
52-week range7.560 - 14.100
Volume3,031,507
Avg. volume3,447,521
Market cap31.943B
Beta (5Y monthly)1.05
PE ratio (TTM)18.88
EPS (TTM)0.430
Earnings date11 Mar 2020
Forward dividend & yield0.38 (4.68%)
Ex-dividend date04 Sep 2019
1y target est14.01
  • Bloomberg

    Emirates Is Grounded, and Global Aviation With It

    (Bloomberg Opinion) -- Much as Pan Am Corp. was an emblem of the first wave of global aviation, Emirates has dominated the world airline industry for a generation. Its announcement that almost all passenger flights will be suspended from Wednesday marks the death knell of that era.The Dubai-based carrier is the largest airline by international passenger traffic, with the capacity to move its customers 391 billion seat-kilometers last year. In terms of cross-border traffic, that’s twice the capacity of any U.S. airline and about a seventh more than the three European carriers that are its closest international competitors in terms of scale.The shutdown of that vast network is a hammer-blow not just for the industry but for people around the world. There’s a reason so many airlines are (like Emirates) state-owned, or have special rights and duties to their home countries written into their constitutions. They aren’t just a leisure service, they’re a piece of vital national and international infrastructure that can provide an airlift service in an emergency. Emirates’ initial announcement of a complete suspension of flights Sunday was subsequently updated to say that some destinations would remain open “having received requests from governments and customers to support the repatriation of travellers.”Businesses that thrive on bustling cross-border traffic are inevitably going to struggle in current conditions. Cathay Pacific Airways Ltd., another carrier that, like Emirates, has no domestic aviation market, last week announced it was cutting 96% of capacity in April and May, which is as close as you can get to shutting down. Qantas Airways Ltd. is also ending international flights and Emirates’ local rival Etihad Airways PJSC has made drastic cuts to its schedules.We’ve seen something like this before. Pan Am went bankrupt amid the collapse in air travel that accompanied the 1991 Gulf War; its competitor Trans World Airlines Inc. entered the first of many Chapter 11 processes around the same time. Another wave of bankruptcies and rescue takeovers followed after the Sept. 11 attacks, and again after the 2008 financial crisis. More than a decade on from that, we’re probably overdue for another shakeout.That certainly looks like what we’re going to get. “Most airlines in the world” will be bankrupt by the end of May at current rates of cash burn, according to consultants CAPA Centre for Aviation. The industry needs about $200 billion in bailout money if it’s to survive, according to the International Air Transport Association, the largest group representing airlines.Emirates has some serious weaknesses as it approaches this perfect storm. Dubai’s status as the preeminent hub in the global network of transfer passengers, and its fleet of capacious twin-aisle jets, are as much a product of the recent era of promiscuous globalization as Pan Am’s fleet of gas-guzzling early-model 747s were a product of the era before the 1973 oil crisis.On an immediate level, that means it lacks even the meager domestic aviation cashflows that rivals in the U.S., China and elsewhere can fall back on. In the longer term, there’s the risk that Covid-19 and the Trump-driven trade wars that preceded it raise drawbridges across the world, leaving behind a dark mentality of xenophobia as gates are closed to outsiders. In that grim future, Emirates’ Benetton catalog-tinged vision of a multicultural world shaking hands at Dubai airport looks as outdated as, well, shaking hands.Even if things return to a semblance of normalcy at some point, Emirates’ golden years are behind it – a fact that neatly coincides with the upcoming retirement of Tim Clark, who led the airline since its inception.Rivals with bigger domestic markets have already been looking to use longer-haul 787s and A350s to skip past hub airports like Dubai altogether. The A320neo and the 737 MAX, should it recover from its current woes, will also bite off pieces of medium-haul traffic with budget carrier-style prices, undermining key routes into Europe and South Asia.Emirates still has some advantages in facing the coming conflagration. Unlike Etihad and Qatar Airways, it has never reported a loss in financial reports dating back to 1989. That’s a fairly extraordinary result for an airline that’s been around for so long — although there’s still a week still to go on its current financial year.Most importantly, though, the only shareholders it answers to are Dubai’s ruling Al Maktoum family. For decades, they’ve regarded the carrier as a crucial element of their oil-poor emirate’s strategy for a long-term economic future. With crude prices currently south of $30 and Gulf monarchies edging alarmingly close to burning through their own petrocash piles, that bet looks as sound as it’s ever been.If aviation is about to be crippled by a virus-driven resurgence of nationalism, it’s the carriers most closely bound up with their governments that stand the best chance of survival.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters - UK Focus

    Steep capacity cut leaves airlines with overhedged jet fuel headache

    SYDNEY/SINGAPORE, March 20 (Reuters) - The collapse in global passenger flights has left airlines with fresh challenges: how to manage overhedged jet fuel positions as oil prices crashed to just a third of some contracts agreed in anticipation of rising prices and solid air travel demand. With a sharp plunge in oil prices and the rapid spread of the flu-like virus globally raising uncertainty when and how strongly air travel demand will recover, airlines are now left counting the cost of their heavy fuel hedging. "Given the substantial reduction in our capacity, we do have an overhedged position and that will come at a cost... that we'll realize in the next couple of months," Australia's Qantas Airways Ltd Chief Financial Officer Vanessa Hudson told analysts this week.

  • Reuters

    GRAPHIC-Coronavirus empties airlines' cash drawers, knocks $157 bln off share values

    Global airlines are fast running out of cash after cutting capacity by 90% or even grounding entire fleets due to the broad travel restrictions to contain the spread of the coronavirus, calling into question the survival of several firms. The industry's main global body, the International Air Transport Association (IATA), estimates the sector needs up to $200 billion in government support to help airlines survive.

  • 'Single biggest shock': Aviation battles coronavirus cash crunch
    Reuters

    'Single biggest shock': Aviation battles coronavirus cash crunch

    SYDNEY/PARIS (Reuters) - Boeing and other U.S. aviation companies are seeking billions of dollars in aid as they battle to survive a plunge in demand caused by the coronavirus pandemic, while Airbus is pausing production at two sites to bolster health and safety measures. The rapid spread of the virus across the world has battered airlines as governments have introduced travel restrictions and consumers have stopped making bookings, calling into question the survival of several companies. "It's now fair to call this the single biggest shock that global aviation has ever experienced," Qantas Airways Ltd CEO Alan Joyce said in a memo to the airline's 30,000 staff on Tuesday that was seen by Reuters.

  • Hong Kong's Cathay Pacific to sell six Boeing aircraft to BOC Aviation
    Reuters

    Hong Kong's Cathay Pacific to sell six Boeing aircraft to BOC Aviation

    The sale will enable Cathay Pacific to realise cash which will be used towards its general working capital requirements, the company said in a statement. The carrier last week warned of a substantial loss in the first half of the year and flagged more cuts in flights due to the "unprecedented challenge" from the coronavirus outbreak that has forced it to ground more than half of its fleet. Cathay said it would lease the aircrafts back from BOC Aviation.

  • Cathay Pacific warns of H1 loss from 'unprecedented' virus challenge
    Reuters

    Cathay Pacific warns of H1 loss from 'unprecedented' virus challenge

    Cathay Pacific warned of a substantial loss in the first half of the year and flagged more cuts in flights due to the "unprecedented challenge" from the coronavirus outbreak that has forced it to ground more than half its fleet. "Cathay Pacific has been through challenging times before, but the scale that we are facing in the current situation really is an unprecedented challenge," Chairman Patrick Healy told reporters of the virus outbreak. "All we know is we remain in a very dynamic situation."

  • Cathay could fly freight-only services on passenger jets after Japan curbs
    Reuters

    Cathay could fly freight-only services on passenger jets after Japan curbs

    Hong Kong's Cathay Pacific Airways Ltd may fly only freight to Japan, and no passengers, if it retains some services whose cancellation it announced at the weekend over travel curbs prompted by a coronavirus, the airline said on Monday. On Saturday, the carrier cut most of its flights to Japan for the rest of March, after Japan said Chinese and Hong Kong passport holders faced two weeks of quarantine on arrival. "Although we do expect our passenger belly cargo operations to be impacted, we are currently evaluating how to continue serving our cargo customers to and from Japan," Cathay told freight clients in an update.

  • Cathay Pacific to close Vancouver cabin crew base, cutting 147 roles
    Reuters

    Cathay Pacific to close Vancouver cabin crew base, cutting 147 roles

    Hong Kong's Cathay Pacific Airways Ltd said on Friday it was closing its Vancouver cabin crew base, laying off 147 crew members, as part of an ongoing business review. The job cuts are the first announced by the airline since it cut 40% of its global capacity as a result of lower demand due to the coronavirus and asked all 27,000 of its staff to take three weeks of unpaid leave. "As part of our ongoing business review, we have made the decision to close down our Vancouver cabin crew base," Cathay said in a statement.

  • Cathay Pacific fined £500k by UK's ICO over data breach disclosed in 2018
    TechCrunch

    Cathay Pacific fined £500k by UK's ICO over data breach disclosed in 2018

    Cathay Pacific has been issued a £500,000 penalty by the UK's data watchdog for security lapses which exposed the personal details of some 9.4 million customers globally -- 111,578 of whom were from the UK. The penalty, which is the maximum fine possible under relevant UK law, was announced today by the Information Commissioner's Office (ICO), following a multi-month investigation. It pertains to a breach disclosed by the airline in fall 2018.

  • What's the Big Attraction in British Airways?
    Bloomberg

    What's the Big Attraction in British Airways?

    (Bloomberg Opinion) -- Even Willie Walsh admits that International Consolidated Airlines Group SA, where he’s the boss, is a “very boring name” for an airline group (IAG’s portfolio includes the more evocatively titled British Airways and Iberia).But should his successor ever wish to change it to something racier they’ll have to seek the blessing of Qatar Airways. On Wednesday the loss-making Gulf carrier said it had hiked its IAG stake from 21.4% to 25.1% in a move that will have cost about $600 million at current prices.Under British share ownership rules, an investor with 25% or more of the stock can block special resolutions, such as changes to the articles of association or to a company’s name. Unlike some airlines, IAG is focused on making money for its shareholders but it’s still a little baffling why the Qatar Airways boss, Akbar Al Baker, would pay all that money for such limited influence (his airline didn’t respond to questions seeking further clarification). Usually, the company’s approach is not to seek board seats.Qatar Airways is doubtless snaffling up stakes in rivals as a means of asserting soft power on behalf of its government, and enhancing its own global flight network — and it’s not alone in doing that. But the Gulf company is one of the most acquisitive carriers, and maybe that’s not a good thing given the mixed performance of airline stocks. In addition to its IAG shares, Qatar owns minority stakes in Latam, Cathay Pacific and China Southern Airlines. It also wants one in RwandAir. Financial considerations aside, Qatar certainly has more of a need to curry favor with international partners than a typical airline. In 2017, the state’s regional neighbors Saudi Arabia, Bahrain, Egypt and the United Arab Emirates imposed an air, sea and land blockade that remains in place. That threatens Doha’s status as an aviation hub.But Qatar Airways’ efforts to gain influence overseas by acquiring stakes in rival carriers haven’t always been welcome. Al Baker had to give up on buying a stake in American Airlines Group Inc. after the latter’s chief executive officer, Doug Parker, made clear the Qataris wouldn’t be welcome. U.S. airlines often accuse the Gulf carriers of unfair competition owing to state subsidies, which they deny.More recently, Lufthansa AG said Qatar Airways should rethink any idea of investing in the German flag carrier. “We did not have Lufthansa privatized in Germany to have it nationalized in Qatar," a spokesman told Reuters in December, sounding unusually frosty.   In fairness, IAG has been one of Qatar Airways’ better investments. The stock has gained about 17% in British pound terms since the airline first acquired a 10% stake in 2015. Subsequent IAG share purchases have done better. With respect, though, few financial advisers would counsel their clients to make concentrated bets on airline stocks.Some of Qatar Airways’ other investments are instructive. Earlier this month Air Italy went into liquidation despite Qatar’s strong desire to keep it afloat. In the end its 49% shareholding counted for nothing. The 9.6% stake that Qatar purchased in Cathay Pacific Airways Ltd. in 2017 also appears to be underwater. The stake was acquired for HK$13.65 a share but the stock is now worth about HK$10.50 amid the protests in Hong Kong and the new coronavirus. Others have struggled too. Qatar’s Gulf rival Etihad Airways PJSC invested in Alitalia and Air Berlin Plc. Both went bust.Of course, Al Baker can invest his company’s capital however he wishes — he doesn’t have shareholders to answer to. But he may want to listen to someone who does. Walsh, who will step down at IAG in March, had this to say about the merits of shareholdings and alliances late last year: “Taking a minority stake without having some form of control, or some influence over what the airline is going to do, has no value whatsoever.”To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    The Economic Hit From Coronavirus Is All in Your Mind

    (Bloomberg Opinion) -- Hindsight can be an asset during an epidemic: Lessons from the past help steer public decision-making and avoid repeating mistakes. Unfortunately, rearview mirrors appear to be in short supply these days.  For all the stimulus measures that officials are rolling out to combat the economic impact of the coronavirus, lower interest rates and bigger budgets are unlikely to make people feel immune. And it’s consumer behavior that will influence the magnitude of any hit. The gap between how people perceive the risk of becoming ill and the likelihood of actually contracting the virus can be vast, driven wider by feelings from past experiences, vivid images or simply fright. A study by the Asian Development Bank, published in October, pins a lot of the economic damage from severe acute respiratory syndrome on psychology. At the height of the 2003 outbreak, 23% of respondents to a public-opinion survey in Hong Kong thought they were either very likely or somewhat likely to be infected. The number of cases wound up at 1,755, according to the World Health Organization, which would have been roughly 0.026% of the population. In Taipei, 74% rated the likelihood of death following contraction of SARS at four or five on a five-point scale compared with an actual mortality rate of 11%.“Individuals, under prevailing circumstances of poor information and stress, can arrive at biased subjective assessments concerning the risk of disease contraction,” Ilan Noy and Sharlan Shields of Victoria University of Wellington in New Zealand wrote in the ADB paper. “This leads to panic and suboptimal decisions, which in turn result in an excessively high cost.”  You may consider the risks of proceeding with an overseas vacation just aren't worth it, for example. Wise to skip dinner and that show, even if you think the chances of catching something are small. Just ask Cathay Pacific Airways Ltd., which warned Monday its first half of the year will be “extremely challenging financially.” Singapore Airlines Ltd. also said it faces “significant challenges.”The setback from SARS was acute: China's gross domestic product growth slipped to 9.1% from 11.1% in the second quarter of 2003 while Hong Kong, Taiwan and Singapore all took a hit. The impact went beyond metrics such as lost working hours, mortality rates, treatment costs, consumer spending and aborted travel; there's the unquantifiable toll of generally avoiding social contact, too.Individual psychology also trickles up to affect companies. Investment and supply-chain decisions are governed by projections about demand during an epidemic and the recovery from it. Apple Inc. said Tuesday that revenue will disappoint because component manufacturers are seeking to contain the virus, in addition to the effect on sales of store closures and reticent shoppers. A day earlier, Nintendo Co. said it will struggle to get Switch consoles to U.S. and European markets because of a production bottleneck stemming from the virus.China's economy is more consequential than in 2003. Its citizens travel more widely and its companies are more intertwined in global capitalism. That restaurant visit forgone in Hong Kong may cost jobs in Hamburg. To limit the impact on growth, then, leaders need to think carefully about how to minimize our natural impulse to be afraid.In Singapore, the government is urging citizens to carry on with life, taking extra precautions to stay healthy and avoid panic-buying. Officials have asked for public trust and, in return, have pledged to keep people informed. That’s a far cry from Hong Kong, where businesses are on lockdown, schools are closed, basic amenities have been stripped from the shelves and public transportation is empty. We’re a long way from knowing what the economic and psychological costs of the current epidemic will be, not to mention the number of lives lost. But if Singapore strikes the right tone, it may well become the model for crisis management. To contact the author of this story: Daniel Moss at dmoss@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Daniel Moss is a Bloomberg Opinion columnist covering Asian economies. Previously he was executive editor of Bloomberg News for global economics, and has led teams in Asia, Europe and North America.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Cathay Pacific flags 'significant'drop in H1 profit, capacity cuts due to coronavirus
    Reuters

    Cathay Pacific flags 'significant'drop in H1 profit, capacity cuts due to coronavirus

    Severe travel restrictions as a result of a coronavirus outbreak in China, which has caused about 1,770 deaths across mainland China, have led to a steep rise in flight cancellations. Flight cancellations have led the number of customers seeking refunds to skyrocket. The carrier, which is the most exposed airline outside mainland China to a demand crunch related to the coronavirus, also said in a statement it had cut capacity by 40% for February and March, against an earlier planned 30% cut.

  • Cathay Pacific flags 'significant' drop in first-half profit, capacity cuts due to coronavirus
    Reuters

    Cathay Pacific flags 'significant' drop in first-half profit, capacity cuts due to coronavirus

    Severe travel restrictions as a result of a coronavirus outbreak in China, which has caused about 1,770 deaths across mainland China, have led to a steep rise in flight cancellations. Flight cancellations have led the number of customers seeking refunds to skyrocket. The carrier, which is the most exposed airline outside mainland China to a demand crunch related to the coronavirus, also said in a statement it had cut capacity by 40% for February and March, against an earlier planned 30% cut.

  • The Cathay Pacific Airways (HKG:293) Share Price Is Down 39% So Some Shareholders Are Getting Worried
    Simply Wall St.

    The Cathay Pacific Airways (HKG:293) Share Price Is Down 39% So Some Shareholders Are Getting Worried

    In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market...

  • What to Watch: Vape ban hits Rizla-owner, Domino's sales rise, and stocks pick-up
    Yahoo Finance UK

    What to Watch: Vape ban hits Rizla-owner, Domino's sales rise, and stocks pick-up

    A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.

  • Cathay Pacific asks staff to take unpaid leave over coronavirus
    Yahoo Finance UK

    Cathay Pacific asks staff to take unpaid leave over coronavirus

    Hong Kong's Cathay Pacific has asked staff to take unpaid leave as it battles slumping demand, while Airbus is closing a factory in China.

  • Cathay Pacific asks employees to take unpaid leave as virus hits demand
    Reuters

    Cathay Pacific asks employees to take unpaid leave as virus hits demand

    Hong Kong's Cathay Pacific Airways asked its 27,000 employees to take three weeks of unpaid leave, saying preserving cash was key for the carrier and that conditions were as grave as during the 2009 financial crisis due to the virus outbreak. Cathay is also asking suppliers for price reductions, putting in place hiring freezes, postponing major projects and stopping all non-critical spending, Chief Executive Augustus Tang said in a video message to staff seen by Reuters. On Tuesday, the carrier said it planned to cut about 30% of capacity over the next two months, including about 90% of flights to mainland China.

  • Reuters - UK Focus

    WRAPUP 8-China virus hits cruise ships, carmakers, airlines and Airbus

    GENEVA/BEIJING, Feb 5 (Reuters) - Thousands of passengers and crew on two cruise ships in Asian waters were placed in quarantine for China's coronavirus on Wednesday as airlines, carmakers and other global companies counted the cost of the fast-spreading outbreak. A multinational WHO-led team would go to China "very soon", it added. China said another 65 people had died in the previous 24 hours, in the highest daily total yet, taking the overall toll on the mainland to 490, most in and around the locked-down central city of Wuhan, where the new virus emerged late last year.

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