Cathay Pacific back up after killer flu

CATHAY PACIFIC Airways has finally managed to restore the deep cuts in capacity caused by the killer flu Sars. But the move by the Hong Kong carrier comes as some experts are predicting the disease may reappear with the onset of winter.

Cathay said it replaced services last month that were cut as demand slumped in March and April because of fear over Sars, Severe Acute Respiratory Syndrome.

However, it acknowledged that yields - return per passenger - were still under pressure as it had been forced to offer discounts to lure back lost custom. Competition also remained fierce, it added.

At the height of the health crisis, Cathay had to deny reports that it intended to ground its entire fleet as air travel nose-dived.

The pneumonia-like disease, which killed more than 700 people worldwide, was spread by international air travellers. Thought to have originated in southern China, it hit Hong Kong's economy hard. Some experts are fearful that Sars could soon make a comeback as many types of flu are more prevalent during the colder winter months.

American Express said that a survey of more than 800 corporate clients showed that 90% would cancel or curb travel plans if Sars reappeared.

Cathay rival Singapore Airlines said it would be back to pre-Sars schedules by the end of this month.