Cathay Pacific admits company yield has been 'disappointing'

Despite being able to manage capacity growth.

According to CCB International Securities, Year-to-date, CX has seen 6% and 14% capacity increases for passenger and cargo respectively, in line with the company’s ASK and AFTK growth targets of 7.0% and 9.6% at the beginning of 2014. 

Here's more from CCB International Securities:

However, CX was able to manage its passenger and cargo capacity growth at -1.8% and 1.7% in 2013. The company itself has admitted that yield has been disappointing year-to-date.

In addition, share price momentum is likely to be strengthened by June-to-September peak season data. On the down side, weak yield caused by aggressive capacity expansion and continuous consensus earnings downgrades remain an overhang.

CX’s share price began to decline in January 2014 indicating an expectation from the equity market that traffic volume growth had peaked. Growth for both RPK and RTK reached above 10% but is likely to lose steam in the short term.