Cathay inflight sales dip despite recovery

Print Article E-Mail Article

The Hong Kong carrier announces expectedly depressed 2003 numbers, but tells DFNI eXTRA that the first signs of 2004 are promising

Cathay Pacific has reported a decline in its inflight retail business in 2003 despite a strong second-half traffic recovery. Duty-free sales dropped 20% to HK$104m ($13.4m), while the carrier?s overall profit slipped 67% to HK$1,303m ($179m).

Inflight sales and amenities manager Anna Cheung told TRW that retail performance in the last quarter of 2003, (October to December) was positive with a 7.7% rise in turnover year on year. And in January 2004 the business showed 15% sales growth compared with the same month in 2003. January?s figure was particularly encouraging as it related to two months before the SARS outbreak in March last year, said Cheung.

The Hong Kong airline anticipated better numbers this year with three new weekly Beijing flights and a daily non-stop New York flight starting on July 1. Hong Kong to Shanghai flights are expected to be announced soon.  

?The recovery of the second half came quicker than initially expected, and was attributable to both pent up demand and special offers created to stimulate passenger traffic,? said group chairman James Hughes-Hallett. Overall, he said, passenger revenue fell 16.6% year-on-year in 2003.