While Cathay Pacific has stepped up its efforts to improve its services, its financial situation has been a turbulent ride over the past few years.
The Hong Kong flag carrier released its interim results for 2018 on Wednesday, as the firm stated it posted a net loss of HKD $263 million (USD $33.5 million) in the first half of 2018. It did much better than the HKD $2 Billion loss it took during the first half of 2017.
As Cathay Pacific it reported further losses, the airline remains committed to its transformation plan to help make it compete more effectively with regional and outside competitors. In recent years, Cathay Pacific has seen the rise of competing airlines from low-cost Chinese carriers and Middle East rivals expand in Asia taking a good share of passenger traffic and cutting into Cathay's revenues.
Fuel costs - which accounts for around 30% of the Cathay Group's expenditures - saw a increase in prices of about 27.9%. Fuel consumption went up by 2.1%.
Among the promising signs of progress in the face of turning its financial situation has been an increase in passenger revenue, strong demand and revenue in its cargo division, and the continued increase of capacity and additional routes the airline has or will be adding.
The Cathay Group remains optimistic that with the new addition of fuel efficient aircraft such as the new Airbus A350s combined with the improvement of inflight amenities will help improve its financial situation.
While the airline continues to invest more into the traveler experience and new planes, it hasn't eased concerns by airline staff surrounding potential cuts in staff.
A report from the South China Morning Post reported last month there would be a “consolidation” of Cathay’s overseas operations, prompting fears over further job losses.
Cathay confirmed to AFP Wednesday that it was restructuring the organization of its “outports”.
“An internal memo has been shared with the employees of the Cathay Pacific Group as our regional and country teams start to communicate and, where necessary, consult with their local teams on the restructuring,” it said in email to AFP without giving further detail.