Hong Kong’s troubled flagship airline Cathay Pacific swung to a $74 million net loss in 2016, the firm said Wednesday, citing “intense competition” from rival carriers.
Low-cost carriers from mainland China ate in to Cathay’s market share and demand from business passengers fell as the firm prepares a wholesale review of its operations, said chairman John Slosar, who added that 2017 would be similarly “challenging”.
The loss last year compares with a profit of $773 million in 2015.
The airline announced a major restructuring programme in January that will see jobs axed, but it has not said how many.
Slosar said Wednesday the changes would aim to cut expenditure.
“Our organisation will become leaner,” he said in a statement to the Hong Kong exchange.
“Our aim is to reduce our unit costs excluding fuel over the next three years,” he added.
Passenger revenue dropped 8.4 percent year-on-year to $8.6 billion, hit by overcapacity in the market and weak foreign currencies.