Here's why Cathay Pacific jumps despite worst H1 loss in nearly two decades
Cathay Pacific Airways shares rose as much as 6 percent to HK$12.42 in Hong Kong trading
- Cathay Pacific Airways shares rose as much as 6 percent to HK$12.42 in Hong Kong trading
- Hong Kong budget carrier reported a HK$2.1 billion loss in the first half of 2017 citing "intense competition"
- Analysts believe earnings had bottomed out as management forecasts passenger and cargo yields to sequentially improve
- Cathay's passenger yield – a key measure of airline profitability – fell 5.2 percent to $0.515
- Cathay in May announced a three-year corporate transformation program, the effects of which will be felt in the second half of this year and more in 2018
- The airline has cut 600 jobs at in Hong Kong, the biggest job losses in nearly two decades, as part of a broader plan to help return to profitability
- Broker Daiwa upgraded the airline to a "hold" recommendation from a "sell" due to recovery in cargo yields, while Jefferies maintained a "buy", saying losses had bottomed.