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Cathay Pacific Again Sells First-class Tickets at Economy Rates

From BBC News

A group of lucky Cathay Pacific customers have scored first-class seats at economy prices, in the second fare blunder by the airline this month.

Tickets on trips from Hong Kong to Portugal were sold on the airline’s website for $1,512, instead of $16,000 usually charged for a similar journey.

The carrier said it would honour the tickets as it investigates the cause of the error.

It extends a recent run of blows to the firm including a huge data breach.

The mispriced fares were available on Cathay Pacific’s website on Sunday.

First-class flights from Lisbon to Hong Kong – via London with a connecting flight – were offered for $1,512 (£1,177), according to the South China Morning Post.

A similar first-class journey through Frankfurt would cost $16,000.

In a statement, the Hong Kong carrier said it would honour the tickets.

“We are looking into the root cause of this incident both internally and externally with our vendors,” it said.

“For the very small number of customers who have purchased these tickets, we look forward to welcoming you on board to enjoy our premium services.”

Just two weeks ago the airline made the same blunder.

Lucky flyers made off with business-class seats on flights from Vietnam to New York for about $675 return. They should have cost $16,000.

At the time, the carrier acknowledged its “mistake” and again, said it would welcome the passengers onboard.

Cathay Pacific to honour $16,000 fares sold for $675

Airlines have a mixed history of honouring tickets sold in error.

Singapore Airlines, for example, honoured tickets sold for less than half price in 2014. But United Airlines cancelled transatlantic tickets sold for less than $100 by a “third party software provider” the following year.

A challenging year

The latest stumble extends a bad run for Cathay Pacific.

In October, the firm was the subject of a data breach in its IT systems, jeopardising the personal information of up to 9.4 million passengers.

Huge data hack hits Cathay Pacific

A month earlier, it had to send one of its planes back to the paint shop after spelling the airline’s name “Cathay Paciic” on the side of a jet.

Those missteps come as the airline tries to return to profitability after posting its first ever back-to-back annual loss in March.

Cathay Pacific has struggled against competition, particularly from low-cost Chinese carriers covering Hong Kong, mainland China and South East Asia.

Image from http://www.cathaypacific.com

Airline Stocks That Look Ready to Rise

Barron’s says it’s going to be another good day for airlines, as a number of analysts had good things to say about stocks across the sector.

Where we were: Airlines have struggled this year, but Spirit Airlines (SAVE) upbeat fourth-quarter forecast sent shares soaring Tuesday.

Click the link below for the full story!

LATAM Airlines Posts Steep Third-Quarter Profit Fall

SANTIAGO (Reuters) – LATAM Airlines (LTM.SN), the biggest airline group in Latin America, reported a steep fall in third-quarter profit due to lower passenger demand in Argentina and Brazil as well as higher fuel prices and competition from low-cost airlines.

LATAM reported a net profit of $53 million for the quarter, down from $160 million a year earlier, according to a securities filing.

But it said it was maintaining its guidance for the year, expecting an overall operating margin for 2018 of between 6.5 and 8 percent. It is focused on cost-cutting to offset higher expenses.

“We are transporting more passengers with a leaner organization,” a company executive told analysts on a conference call.

Morgan Stanley raised its target price for LATAM shares traded in the New York stock exchange to $9 following the earnings release, from a previous target price of $8.80.

Shares were up 3.4 percent at $9.26 on Wednesday morning.

Demand in the quarter slowed in Brazil due to a weaker local currency, and demand fell significantly in Argentina, where the local currency faced an abrupt devaluation during the quarter, reducing passengers’ purchasing power.

“We carried more passengers in all our markets except Argentina, where we cut capacity this year,” an executive said.

Lower demand and increased fuel expenses due to higher oil prices has slashed profits across regional airlines. One of LATAM’s biggest competitors, Brazil’s Gol Linhas Aereas Inteligentes SA (GOLL4.SA), reported a loss of $110 million during the quarter.

Market conditions prompted LATAM to renegotiate commitments for future aircraft purchases, achieving a reduction of $2.3 billion in fleet expenses through 2021, the company said.

The airline will also boost the number of available seats in some of its aircraft by 3 percent as improving utilization and seat count may allow it to grow with fewer aircraft.

Revenue declined by 5 percent to $2.5 billion in the quarter compared with the same period in 2017.

In the quarter, LATAM spent the equivalent of 30 percent of its revenue on fuel, compared with 21 percent a year earlier.

In comparison, Gol spent 37 percent of its revenue on fuel in the same quarter, up from 26 percent a year earlier.

(Reporting by Antonio de la Jara in Santiago and Marcelo Rochabrun in Sao Paulo; Writing by Marcelo Rochabrun; Editing by Bernadette Baum)

Chinese EV Maker NIO Stock Rises On U.S. debut

(Reuters) – Shares of Chinese electric carmaker NIO Inc (NIO.N) recovered sharply from a 15 percent fall in their market debut on Wednesday, a day after the company’s IPO was priced at the lower end of the expected range.

NIO shares rose as much as 11 percent to $6.93 in afternoon trading, giving it a market capitalization of $7.11 billion.

The rebound in shares was a welcome relief for NIO, whose offering came under pressure as investors have turned wary about electric carmakers due to struggles at its chief rival Tesla Inc (TSLA.O).

Investors have worried about Tesla’s cash-burn rate as the company struggles to meet its production targets amid its efforts to become a mass-market automaker.

NIO began deliveries of its ES8 SUVs in June and in August sold 1,121 units. The company plans to launch a second, lower-priced electric sport-utility vehicle, the ES6, by the end of this year.

NIO, founded by Chinese entrepreneur William Li in 2014, incurred a net loss of $502.6 million in the first six months of 2018 on $6.95 million in revenue. It has $677 million in cash and cash equivalents as of June 30.

The listing – the third-biggest in the United States by a Chinese firm this year – comes as Chinese EV makers seek fresh capital to develop new products and finance investments in areas including autonomous driving and battery technologies.

NIO, formerly known as NextEV and backed by Chinese tech heavyweight Tencent Holdings Ltd <0700.HK>, is one of several largely Chinese-funded EV startups betting on the benefits of local production to compete with firms such as Tesla.

Having begun promoting EVs in 2009, China aims to become a dominant global producer as it bids to curb vehicle emissions, boost energy security and promote high-tech industries.

Several EV makers such as WM Motor Technology Co and Xpeng Motor have also raised funds from heavyweight investors including tech giants Alibaba Group Holding Ltd (BABA.N), Baidu Inc (BIDU.O) and Tencent.

Goldman Sachs, JPMorgan and Morgan Stanley led the IPO. Bank of America Merrill Lynch, Credit Suisse, Citigroup, Deutsche Bank and UBS were also part of the process.

(Reporting by Diptendu Lahiri in Bengaluru; Editing by Sriraj Kalluvila and Anil D’Silva)

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