Protests in Hong Kong which started in June affected the price of Cathay Pacific shares. Hong Kong’s government decided not to enact the law, which would give authorities the right to send prisoners to mainland China. However, it didn’t stop the protesters to continue protesting against the government.
Hong Kong is the Special Administrative Region of the People’s Republic of China. Hong Kong is part of China but with special rights and is governed by the principle “one country, two systems.”
As shares of the company decreased by 4.85% to HK$ 9.80 on Monday. The price of the company’s shares fell to $1.24, which is the lowest point in 10 years. Moreover, the shares of parent company Swire Pacific also decreased by 6.23% to HK$76.70.
Protests and Chinese aviation
These protests had a negative impact on the aviation industry and the local economy in general. It is essential to mention that Cathay Pacific, which is the flag carrier, suffered financial losses. This is a severe blow to Chinese aviation.
Protesters also staged protests inside the terminal of Hong Kong International Airport. This airport is the main base of Cathay Pacific. Moreover, airport authorities canceled dozens of flights from this airport. Nevertheless, this is not the only problem for the local aviation industry.
Cathay Pacific announced on Monday that anyone who would participate in demonstrations against the government would face the consequences. Chinese authorities criticized the company and demanded to dismiss the employees who took part in the protests. Cathay Pacific made it clear that employee would lose their jobs if they take part in these protests.
In this situation, Hong Kong’s flag carrier is trying to solve the problems. Cathay Pacific is under pressure from both governmental as well as private organizations. The company has to find the solution which at the one hand will please aviation authorities and on the other will help their passengers.