Following years of loses, Cathay Pacific is now back in the black for the year 2018.

In a statement to the media and shareholders, the Hong Kong-based airline has estimated a net profit of HKD $2.3 billion (USD $295 million) for the year 2018. The company also stated the figures are based on unaudited accounts, and will release a final report for 2018 around May 2019, but it is great news given that the airline recording a loss of HKD $1.259 million (USD $160 million).

The announcement comes after Cathay Pacific has revamped its business strategy and practices over the last two years as it faces competition from emerging Asian carriers and the Middle East carriers, which also challenges Cathay’s Hong Kong hub as a transit hub.

Among the moves Cathay Pacific has done include cutting jobs in Hong Kong and throughout its network, and reduced seats on aircraft which cut an estimated HKD $4 billion (USD $510 million) in costs for the airline. While making cuts, the airline continued to add new routes and service enhancements, and continued to see strong demand and revenue from its cargo division.

While the final report will come in May, per Hong Kong laws the company is required to report any major changes to shareholders before any scheduled announcement.

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