Cathay Pacific gets a helping hand as Asia Miles unveils mileage plan that never expires, starting from 2020, to attract frequent flyers
- Air miles from 2020 will not expire as long as members keep their accounts active by earning or redeeming them once every 18 months
- Move should boost carrier’s brand image and engage users, and drive ticket sales back to the airline host, consultant says
Asia Miles, a Cathay Pacific-owned frequent flier programme, is amending its policy by removing the expiry date on air miles collected from next year in a move seen as helping the Hong Kong flag-carrier beat a slump in air travel.
Air miles accumulated from January 1 will no longer expire as long as its Asia Miles members keep their accounts active by earning or redeeming them at least once every 18 months, the company said. Miles earned before the new year will continue under the old system of expiring after three years if remain unused, it said.
The move could come as a boost for the Hong Kong flag-carrier after a series of measures to shore up its business, including to scrap year-end bonuses and trim salary increases to save costs, and a cutback in flight capacity for 2020 to cope with falling demand for travel.
Since Augustus Tang Kin-wing took over as chief executive in August, Hong Kong’s economy has slipped into a technical recession and tourist arrivals have dwindled amid six months of anti-government protests. This prompted the carrier to downgrade its earnings outlook.
This quarter, the group lowered its full-year profit forecast, saying that the second half of 2019 would be “significantly below” that of its interim performance when it generated HK$1.35 billion of income. Analysts at Macquarie Research said it may lose 10 per cent of air passengers in the second half because of the unrest.
Cathay Pacific made a HK$2.34 million profit in 2018 to reverse two years of losses. Significant shortfall in advanced bookings in October festive holidays suggest potential full-year loss in 2019.
