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Cathay Pacific cuts profit guidance for second time amid Hong Kong protests

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HONG KONG: Hong Kong’s Cathay Pacific Airways Ltd on Wednesday said the short-term outlook remained “challenging and uncertain” due to anti-government protests in its home market as it lowered its profit guidance for the second time in less than a month.


The airline said passenger numbers fell 7 per cent in October and it now expected second-half profit to be “significantly below” the first half’s HK$ 1.347 billion ($172.04 million), in a step up from the wording “below” used last month.


Hong Kong anti-government protesters on Wednesday paralysed parts of the Asian financial hub for a third consecutive day, with some transport links, schools and many businesses closing after an escalation of violence.


“Overall we foresee a challenging remainder of 2019 for our airlines,” Cathay Chief Customer and Commercial Officer Ronald Lam said. “Looking ahead, our advanced bookings continue to show weakness in both inbound and outbound Hong Kong traffic for the rest of 2019, partly offset by moderately increased transit passengers.”


Cathay reduced passenger flight capacity by 2-4 per cent versus its original schedule between August and October and made further cuts of 6-7 per cent for November and December, Lam said. — Reuters


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