UPDATE 1-Cathay Pacific sees pressure on yields due to intense competition
(Adds details on performance of cargo business, executive comment)
July 18 (Reuters) - Hong Kong's Cathay Pacific Airways Ltd said on Thursday it expected yields, a proxy for airfares, to be under pressure in the coming months as performance in North America and Europe lags expectations due to intense competition.
Long-haul destinations have performed below expectations, especially on the yield front, the airline said in a statement.
Cathay said last month that its yields had come under "tremendous pressure" due to declining travel demand, especially to and from long-haul destinations.
Meanwhile, geopolitical tensions continued to be a bane for the airline's cargo business, with freight volumes declining 9.1% in June from a year earlier and nearly 6% in the first six months of the year.
The cargo business is unlikely to see a rebound in volumes in the coming months, Cathay Pacific Director Commercial and Cargo Ronald Lam said.
Global airlines in June slashed a widely watched annual industry profit forecast by 21% as an expanding trade war and higher oil prices compound worries about an overdue industry slowdown. (Reporting by Aditya Soni in Bengaluru; Editing by Muralikumar Anantharaman)
