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AAPA cancels Hong Kong Assembly of Presidents
November 15th 2019
Disruptive protests have become “unpredictable”. Passenger traffic remains down with slowing aircraft movements. Read More »
The Association of Asia-Pacific Airlines (AAPA) has cancelled the 63rd Assembly of Presidents that was to be held in Hong Kong on November 21-22.
“This was a very difficult decision, given our commitment to organise this important industry event, but reflects the unpredictability of the situation in Hong Kong. At the same time, the well-being of our delegates and guests has always been of paramount importance,” the AAPA said in a statement co-signed by its director general, Andrew Herdman, and Augustus Tang, CEO of the host airline, Cathay Pacific Airways.
Hong Kong has entered a sixth month of civil unrest, but until a week ago, the increasingly violent protests have primarily occurred on weekends and in specific areas across the Special Administrative Region (SAR).
However, this week, the anti-government protesters extended their disruption to the heart of the SAR’s CBD where lunchtime office workers witnessed police tear gassing protesters in one of the busiest pedestrian and motor traffic thoroughfares of Hong Kong.
Hong Kong International Airport’s October traffic results showed a 12.9% decline in passengers year-on-year, similar to September’s 12.7% fall-off and August’s 12.5% decline. The August figures were impacted by forced shutdowns of the airport. The more recent traffic declines reflect the fact travellers are avoiding Hong Kong.
Aircraft movements declined 3.5% in August, a result of the disruption at the airport that month. September movements declined 1.0% and 6.1% in October, indicative of the time airlines needed to adjust schedules and cancel flights.
Cathay Pacific and Cathay Dragon fared better than the airport average. They cut October flights by 2.9%, Passenger traffic declined 7.1%. European 5.4% RPK growth offset a 4.6% North American RPK decline. China was down 21.9%. Load factor dipped 4.0 points to 77.6%.
Not reflected in the statistics is passenger volume shifting from local traffic to lower-yielding transfer traffic, which carries a financial impact.
Cathay Pacific chief customer and commercial officer, Ronald Lam, said: “We expect our second-half financial results will be significantly below those of our first-half.” Previously, he had not used “significantly,” a qualification that attracted much media attention.
It was interpreted as a profit warning, but in Hong Kong “profit warning” carries the specific definition of a required regulatory announcement when the increase or decrease in expected profit exceeds 50%.
