Cathay Pacific launches lifestyle brand as travel revenue dries up

imageStock Markets10 minutes ago (Jul 05, 2021 05:41AM ET)

(C) Reuters. FILE PHOTO: A passenger walks to the First Class counter of Cathay Pacific Airways at Hong Kong Airport in Hong Kong, China April 4, 2018. REUTERS/Bobby Yip/File Photo

(Reuters) – Hong Kong’s Cathay Pacific Airways (OTC:CPCAY) said on Monday it had launched a lifestyle brand to provide offers in hospitality and shopping as the airline seeks to tap new revenue streams amid a collapse in travel demand.

The brand “Cathay” will allow users to purchase services and goods through the airline only in Hong Kong at first, which will be expanded globally later, the company said, adding that a credit card in conjunction would be launched soon.

Cathay’s move comes after low-budget carrier AirAsia in March announced plans to launch air taxi and drone delivery services, while Singapore Airlines (OTC:SINGY) branched out into the restaurant business last year.

The Hong Kong flag carrier has been hit hard by the pandemic like its industry peers, with Cathay operating at just 8% of its usual passenger capacity as it forecast “substantial” losses for a third consecutive half.

Cathay Pacific launches lifestyle brand as travel revenue dries up

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