Cathay Pacific Returns To Black Amid Challenges

Cathay Pacific returned to the black in the first half of the year, and has expressed optimism towards its business for the rest of 2019 despite economic and political uncertainties.

Hong Kong's flagship carrier posted first-half earnings of HK$1.35 billion, reversing a loss of HK$263 million in the same period last year.

Interim revenue rose 0.9 percent to 53.5 billion dollars as passenger capacity increased by 6.7 percent.

But cargo revenue fell 11.4 percent, weakened by a trade war between China and the United States.

This is also the first time since 2016 that the carrier has posted a first-half profit.

The airline said widespread protests in Hong Kong reduced inbound passenger traffic in July and were adversely impacting forward bookings. The carrier cancelled dozens of flights on Monday due to a general strike.

Chairman John Slosar warned of further impact to the business in response to both the unrest and global trade tensions.

"Geopolitical and trade tensions are expected to continue to affect the global economy and, in turn, demand for air travel and air freight," he said.

But Cathay also said it normally achieved better financial results in the second half of the year and, despite headwinds and other uncertainties, it expected that to be the case in 2019.

Slosar said Cathay would continue to make "significant investments in strengthening Hong Kong's standing as Asia's largest international aviation hub". (additional reporting by AFP)