Financial news
Written by: Yue Yueting
2020-02-04 20:20
Last updated: 2020-02-04 20:20The Hong Kong government announced on Tuesday (January 28) that four local airlines (Cathay Pacific, Cathay Dragon, Hong Kong Express and Hong Kong Airlines) will gradually reduce scheduled passenger flights to and from Hong Kong and the Mainland, with a total of about 480 per week The class was reduced to about 240 classes. Cathay Pacific (0293) today announced that Cathay Pacific and Cathay Dragon will gradually reduce their flights to and from Mainland China by approximately 90%, and it is expected that their capacity will be reduced by 30%.
Zhang Zhiwei, co-director of Xincheng Securities, believes that Cathay ’s cuts to and from Hong Kong and the Mainland will affect passenger and cargo revenues. However, based on Cathay ’s interim results as of the end of June last year, North Asian passenger services (including flights to and from Hong Kong and the Mainland, Taiwan, Japan, etc. ) Only accounts for about 20% of the overall passenger services. In addition to the recent decline in oil prices, it is beneficial to aviation stocks and can be hedged to a certain extent. Therefore, it is currently difficult to predict the impact of flight cuts on revenue, but compared with Air China, China Southern Airlines and China Eastern Airlines, Its impact is small.
Zhang Zhiwei, co-director of Xincheng Securities, said that Cathay currently faces more unstable factors, such as strikes, reduction of flights to and from the Mainland, competition from low-cost airlines, etc. The business may not grow at a high speed. Investors should not buy the stock for the time being. . (Profile picture)
With the continued pneumonia epidemic in Wuhan and the economic slowdown in China and Hong Kong, Zhang Zhiwei estimates that citizens will be more “hands tight” when traveling overseas, and prefers to choose low-cost airlines, which will be beneficial to the development of Hong Kong Express business, but at this stage it is unknown whether Hong Kong Express ’s business with Cathay Pacific Whether the contribution ratio is enough to offset the decrease in revenue. "In March, when Cathay announced its results, we will see the true chapter, and how much your Majesty will help." For citizens who want to go to Japan, Taiwan and other places to buy masks on the way out, he feels that a large number of citizens may not take the Hong Kong Express "parallel imports". Moreover, Hong Kong Express tickets are cheaper, so the trend of "parallel imports" may not help supplement Cathay's performance. .
Hong Kong Airlines repeatedly reported financial difficulties last year. Zhang Zhiwei frankly feared that Hong Kong Airlines' cutback on mainland flights might cause the company to have a shutdown crisis. Because of the general operating conditions of Hong Kong Airlines, last year the bank syndicate led by China Development Bank rescued it and was able to temporarily surmount the crisis. However, the outbreak of pneumonia in Wuhan, China is raging. "(If)" White Samurai "tightened pneumonia in Wuhan, Hong Kong Airlines would never know if it happened again. He believed that Air China (0753), China Southern Airlines (1055) and China Eastern Airlines (0670) is definitely the most affected airline, but many mainland residents want to go to Guangzhou, Shenzhen and other cities with better medical conditions for treatment, and even want to "strike" to Hong Kong, which may spread the epidemic in the south Faster, causing China Southern Airlines to become the hardest hit area; while Air China ’s business focuses on Beijing, I believe the central government will curb the spread of the epidemic.
Cathay Pacific ’s passenger load last year decreased by 1.8 percentage points year-on-year. The Group stated earlier that the booking situation for the Lunar New Year was quite satisfactory due to the increase in transit passengers. However, the booking situation after the Lunar New Year was significantly behind, especially for inbound passenger traffic. why. (Profile picture)
Cathay Pacific: Reduction in flights is a temporary measure
Cathay Pacific announced that Cathay Pacific and Cathay Dragon will gradually reduce the number of flights to and from mainland China by approximately 90%. Other network flights will also be significantly reduced in the next two months depending on market conditions and other factors. The Group emphasizes that reducing flights is a temporary measure and is currently financially sound. Hong Kong Express's mainland destination is only Ningbo. The company stated that it has adjusted and reduced the number of flights between Hong Kong and Ningbo, and will continue to closely monitor the development of the epidemic and maintain contact with relevant government departments to make timely response measures.
In addition, Hong Kong Airlines stated that the company has cancelled more than 200 flights to and from Hong Kong and Mainland China in recent weeks. The drop in visitors to Hong Kong in the second half of last year has hurt Hong Kong Airlines ’business and revenue, and it is expected that tourism demand will continue to weaken to the second place this year. Quarter, and the recovery will be very slow. The company will continue to adjust shifts and suspend multiple destinations to meet market demand, and will manage human resources from time to time in order to achieve a more streamlined and effective structure. At present, Hong Kong Airlines operates as usual.
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