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Cathay scrapped its second-half profit forecast in October and announced a review of its business. The December edition of Cathay's staff magazine, seen by Reuters, reported Chief Executive Ivan Chu would unveil the results on Jan. 18. Cathay declined to comment on the details of its review. "The new management direction has to look past market share gains," said Will Horton, a Hong Kong-based analyst for aviation consultancy CAPA. "That hasn't been profitable and will become more competitive. It is well past time to get serious on costs." Cathay's share price has tumbled to its lowest level since the depths of the global financial crisis in 2009, and none of the 18 analysts polled by Thomson Reuters have a "buy" recommendation on the stock. Some analysts say the carrier will for 2017 report its first full-year loss since 2010. The rapid growth of Chinese rivals such as China Eastern Airlines <600115.SS> <0670.HK> and China Southern Airlines <600029.SS> <1055.HK> has put pressure on ticket prices at a time when Cathay's costs have risen because of the strength of the Hong Kong dollar against the Chinese yuan. Lower cost hometown rival Hong Kong Airlines is also expanding rapidly to destinations served by Cathay. ENTER THE DRAGON James Pearson, who heads Basair Aviation College in Brisbane, said Cathay may need to slash its 33,700 workforce, reduce frequencies on underperforming routes and cut costs at short-haul arm Cathay Dragon, where it could shift more flights.

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