Core Viewpoint - Cathay Pacific's subsidiary Hong Kong Express recorded losses in the first half of the year due to rumors about earthquakes in Japan affecting travel demand, but the company is diversifying its route network to reduce reliance on Japan [1][2] Group 1: Financial Performance - Hong Kong Express reported losses in the first half of the year primarily due to a significant drop in travel demand to Japan in May and June, which is expected to take time to recover [1] - The company has opened several new routes in recent years, which are still in the cultivation phase and unlikely to be profitable in the short term, although the long-term outlook remains positive [1] Group 2: Route Expansion and Demand - As of June this year, Cathay Pacific has expanded its global passenger destinations to over 100, implementing a strategy of parallel expansion in domestic and international routes [2] - The average passenger load factor is currently at 85%, with expectations for continued strong demand and potential revenue growth in the second half of the year [2] Group 3: Operational Strategy - Cathay Pacific announced an additional purchase of 14 Boeing 777-9 aircraft, with future investments expected to exceed HKD 100 billion, emphasizing the importance of financial stability over the next decade [1] - The company is actively seeking new opportunities in the cargo market despite uncertainties due to tariffs and global economic fluctuations, leveraging flexible scheduling and route optimization [2] Group 4: Market Conditions - The company anticipates that ticket prices may gradually decline as capacity continues to increase, helping to restore market supply and demand balance [2] - The performance in the second half of the year will be influenced by oil price trends, with hopes of achieving stable profits for three consecutive years [2]

Core Viewpoint - Cathay Pacific's subsidiary, Hong Kong Express, reported a loss in the first half of the year due to the impact of rumors regarding earthquakes in Japan, leading to a significant drop in demand for travel to Japan [1] Group 1: Financial Performance - Hong Kong Express recorded a loss in the first half of the year primarily due to two reasons: a substantial decline in demand for travel to Japan in May and June, and the ongoing cultivation period for newly opened routes which are not yet profitable [1] - The overall demand for air travel remains strong, with an average passenger load factor of 85%, and revenue is expected to improve in the second half of the year despite some fluctuations [2] Group 2: Strategic Developments - Hong Kong Express is diversifying its route network, having previously relied on Japan for about 50% of its routes, now adding destinations such as South Korea, Taiwan, and mainland China [1] - Cathay Pacific announced an order for 14 additional Boeing 777-9 aircraft, with future investments expected to exceed HKD 100 billion, emphasizing the importance of financial stability over the next decade [1] Group 3: Market Outlook - The company is optimistic about the long-term prospects of its new routes, despite the short-term challenges [1] - The cargo market faces uncertainties due to tariffs and global economic fluctuations, but the company is maintaining a robust performance through flexible scheduling and route optimization [2] - With increasing capacity, the market supply-demand balance is expected to recover, potentially leading to a gradual decrease in ticket prices [2]