Singapore — Cathay Pacific Airways’s operating environment remained challenging in the first half of the year, CEO Rupert Hogg said, dashing expectations of an early recovery for the carrier, which is cutting jobs following the first annual loss in eight years. "We said we expected the operating environment in 2017 to remain challenging," Hogg said on Tuesday. "This has been the case. Our performance in the first half of 2017 continued to be disappointing." Cathay Pacific shares have rallied 23% in 2017 as the airline embarked on a three-year transformation that included eliminating 600 jobs. Challenges at Hong Kong’s marquee airline and rival Singapore Airlines show how some of Asia’s biggest airlines are faring amid intense competition from Chinese and Middle Eastern rivals and a surge in capacity, which is pummelling ticket prices. Hogg said strong competition was putting "intense and increasing pressure" on passenger yield, which fell to the lowest level in seven years in 2016. ...
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