Cathay Pacific aircraft

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Hong Kong’s flag provider Cathay Pacific has reported its first annual loss for the reason that international monetary disaster.

Too many empty seats and growing competitors from mainland Chinese language carriers contributed to the poor outcomes, the airline stated.

The web lack of HK$575m ($74m; £60.1m) for 2016, was down from a HK$6bn revenue the earlier 12 months.

It’s only the third time the corporate has posted a full-year loss because it was based in 1946.

The airline’s shares fell by 6% on Wednesday.

Cathay Pacific is going through fierce rivalry from mainland Chinese language and Center Jap airways which are increasing quickly within the area.

Carriers akin to Air China and China Jap are providing extra direct providers from the mainland, making it much less enticing for passengers to journey by way of Hong Kong.

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The airline stated “intense competitors” from these rival carriers contributed to gross sales dropping by 9.four%.

Demand for profitable enterprise and top notch seats had additionally gone down, stated chairman John Slosar.

He warned that 2017 could be equally “difficult”.

In January, the airline introduced a serious restructuring programme which might see jobs axed, though it stays unclear what number of roles will probably be affected.

“Our organisation will develop into leaner,” the provider stated in an announcement to the Hong Kong trade on Wednesday.