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Investors warned of strike's impact

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SCMP Reporter

CATHAY Pacific has warned investors to expect the airline's recent flight attendants' strike to have a ''significant impact'' on the company's results for this year.

The warning came as directors detailed some of the costs of the 17-day dispute.

The cost of chartering aircraft has been put at $140 million. A further $10 to $15 million was spent on overtime payments and putting up delayed passengers in hotels.

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Cathay expects to pay a further $5 million to $7 million to disgruntled passengers and travel agents affected by the strike.

However, directors remained reluctant to estimate how much revenue Hongkong's flag carrier had lost during the strike.

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And while the direct costs of the dispute might be quantifiable, they said it would take more time to evaluate the long-term impact on the company.

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