Cathay demand goes into a dive

Hong Kong carrier Cathay Pacific has suffered a drop in passenger numbers for the first time in nearly two years.

Demand "slowed significantly" as the credit crisis and slowing global economic growth curbed business travel, the carrier said. Chief executive Tony Tyler recently said the market "will get more difficult".

Cathay Pacific and its Dragonair unit filled 72.3% of available seats in September. The passenger load factor was 6.7% lower than a year ago as the carrier increased capacity by 14.2%.

Cathay carried 141,570 tonnes of cargo last month, down 7.3% from a year earlier. It filled 66.5% of cargo space, 2.6% less than a year ago.

"Looking forward, we continue to see a softening in advance bookings, particularly for the premium cabins and in those sales territories more exposed to the financial services sector," said Tom Owen, Cathay Pacific's general manager for revenue management.

Cathay stock has plunged 48% this year on concerns that higher fuel cost and slowing demand will crimp margins.