Cathay Pacific launches lifestyle brand as travel revenues dry up

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A passenger walks to the Cathay Pacific Airways first class counter at Hong Kong Airport in Hong Kong, China, April 4, 2018. REUTERS / Bobby Yip / File Photo

July 5 (Reuters) – Hong Kong-based Cathay Pacific Airways (0293.HK) announced Monday that it had launched a lifestyle brand to offer hospitality and shopping deals as the airline tries to face the collapse in travel demand to develop new sources of income.

The “Cathay” brand will allow users to initially only purchase Hong Kong services and goods through the airline, which will later be expanded globally, the company said, adding that a credit card associated with it will soon be introduced.

Cathay’s move comes after low-budget airline AirAsia (AIRA.KL) announced plans to launch air taxi and drone delivery services in March, while Singapore Airlines (SIAL.SI) entered the restaurant business last year. Continue reading

The Hong Kong airline, like its industry peers, has been hit hard by the pandemic, with Cathay operating at just 8% of its usual passenger capacity as it forecasts “significant” losses for the third straight half year. Continue reading

Reporting by Anushka Trivedi in Bengaluru; Editing by Shailesh Kuber

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