CPCAY - Cathay Pacific Airways Limited

Other OTC - Other OTC Delayed Price. Currency in USD
6.79
+0.04 (+0.56%)
At close: 3:56PM EST
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Previous Close6.75
Open6.85
Bid0.00 x 0
Ask0.00 x 0
Day's Range6.72 - 6.85
52 Week Range5.97 - 8.97
Volume5,772
Avg. Volume19,080
Market Cap5.354B
Beta (5Y Monthly)1.19
PE Ratio (TTM)79.88
EPS (TTM)0.09
Earnings DateN/A
Forward Dividend & Yield0.23 (3.44%)
Ex-Dividend DateSep 02, 2019
1y Target EstN/A
  • Cathay Pacific to cut global capacity by 30% amid coronavirus epidemic
    Reuters Videos

    Cathay Pacific to cut global capacity by 30% amid coronavirus epidemic

    Hong Kong based airline Cathay Pacific has asked all of its 27,000 employees to take three weeks of unpaid leave, as it tries to preserve cash amid the coronavirus outbreak. Chief Executive Augustus Tang told Reuters the situation facing the company was now as severe as the 2009 financial crisis. The carrier will also be be asking suppliers for price reductions, putting in place hiring freezes, postponing major projects and stopping all non-critical spending. Cathay Pacific flights have already been hit by the months of civil unrest in Hong Kong, where protests have claimed the lives of over 500 people. Now the airline plans to cut 30% of its capacity over the next 2 months and 90% of its routes to mainland China. Staff have been told the unpaid leave is not compulsory, but are being encouraged to take it between March and June. Markets responded positively to the news, with Cathay Pacific shares up 2.7% on Wednesday (February 5).

  • Global airlines trade group says coronavirus may cost industry $29 billion
    MarketWatch

    Global airlines trade group says coronavirus may cost industry $29 billion

    The trade group for global airlines said Thursday that the virus causing COVID-19 has the potential for causing a 13% decline in demand for Asian carriers this year.

  • What's the Big Attraction in British Airways?
    Bloomberg

    What's the Big Attraction in British Airways?

    (Bloomberg Opinion) -- Even Willie Walsh admits that International Consolidated Airlines Group SA, where he’s the boss, is a “very boring name” for an airline group (IAG’s portfolio includes the more evocatively titled British Airways and Iberia).But should his successor ever wish to change it to something racier they’ll have to seek the blessing of Qatar Airways. On Wednesday the loss-making Gulf carrier said it had hiked its IAG stake from 21.4% to 25.1% in a move that will have cost about $600 million at current prices.Under British share ownership rules, an investor with 25% or more of the stock can block special resolutions, such as changes to the articles of association or to a company’s name. Unlike some airlines, IAG is focused on making money for its shareholders but it’s still a little baffling why the Qatar Airways boss, Akbar Al Baker, would pay all that money for such limited influence (his airline didn’t respond to questions seeking further clarification). Usually, the company’s approach is not to seek board seats.Qatar Airways is doubtless snaffling up stakes in rivals as a means of asserting soft power on behalf of its government, and enhancing its own global flight network — and it’s not alone in doing that. But the Gulf company is one of the most acquisitive carriers, and maybe that’s not a good thing given the mixed performance of airline stocks. In addition to its IAG shares, Qatar owns minority stakes in Latam, Cathay Pacific and China Southern Airlines. It also wants one in RwandAir. Financial considerations aside, Qatar certainly has more of a need to curry favor with international partners than a typical airline. In 2017, the state’s regional neighbors Saudi Arabia, Bahrain, Egypt and the United Arab Emirates imposed an air, sea and land blockade that remains in place. That threatens Doha’s status as an aviation hub.But Qatar Airways’ efforts to gain influence overseas by acquiring stakes in rival carriers haven’t always been welcome. Al Baker had to give up on buying a stake in American Airlines Group Inc. after the latter’s chief executive officer, Doug Parker, made clear the Qataris wouldn’t be welcome. U.S. airlines often accuse the Gulf carriers of unfair competition owing to state subsidies, which they deny.More recently, Lufthansa AG said Qatar Airways should rethink any idea of investing in the German flag carrier. “We did not have Lufthansa privatized in Germany to have it nationalized in Qatar," a spokesman told Reuters in December, sounding unusually frosty.   In fairness, IAG has been one of Qatar Airways’ better investments. The stock has gained about 17% in British pound terms since the airline first acquired a 10% stake in 2015. Subsequent IAG share purchases have done better. With respect, though, few financial advisers would counsel their clients to make concentrated bets on airline stocks.Some of Qatar Airways’ other investments are instructive. Earlier this month Air Italy went into liquidation despite Qatar’s strong desire to keep it afloat. In the end its 49% shareholding counted for nothing. The 9.6% stake that Qatar purchased in Cathay Pacific Airways Ltd. in 2017 also appears to be underwater. The stake was acquired for HK$13.65 a share but the stock is now worth about HK$10.50 amid the protests in Hong Kong and the new coronavirus. Others have struggled too. Qatar’s Gulf rival Etihad Airways PJSC invested in Alitalia and Air Berlin Plc. Both went bust.Of course, Al Baker can invest his company’s capital however he wishes — he doesn’t have shareholders to answer to. But he may want to listen to someone who does. Walsh, who will step down at IAG in March, had this to say about the merits of shareholdings and alliances late last year: “Taking a minority stake without having some form of control, or some influence over what the airline is going to do, has no value whatsoever.”To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    The Economic Hit From Coronavirus Is All in Your Mind

    (Bloomberg Opinion) -- Hindsight can be an asset during an epidemic: Lessons from the past help steer public decision-making and avoid repeating mistakes. Unfortunately, rearview mirrors appear to be in short supply these days.  For all the stimulus measures that officials are rolling out to combat the economic impact of the coronavirus, lower interest rates and bigger budgets are unlikely to make people feel immune. And it’s consumer behavior that will influence the magnitude of any hit. The gap between how people perceive the risk of becoming ill and the likelihood of actually contracting the virus can be vast, driven wider by feelings from past experiences, vivid images or simply fright. A study by the Asian Development Bank, published in October, pins a lot of the economic damage from severe acute respiratory syndrome on psychology. At the height of the 2003 outbreak, 23% of respondents to a public-opinion survey in Hong Kong thought they were either very likely or somewhat likely to be infected. The number of cases wound up at 1,755, according to the World Health Organization, which would have been roughly 0.026% of the population. In Taipei, 74% rated the likelihood of death following contraction of SARS at four or five on a five-point scale compared with an actual mortality rate of 11%.“Individuals, under prevailing circumstances of poor information and stress, can arrive at biased subjective assessments concerning the risk of disease contraction,” Ilan Noy and Sharlan Shields of Victoria University of Wellington in New Zealand wrote in the ADB paper. “This leads to panic and suboptimal decisions, which in turn result in an excessively high cost.”  You may consider the risks of proceeding with an overseas vacation just aren't worth it, for example. Wise to skip dinner and that show, even if you think the chances of catching something are small. Just ask Cathay Pacific Airways Ltd., which warned Monday its first half of the year will be “extremely challenging financially.” Singapore Airlines Ltd. also said it faces “significant challenges.”The setback from SARS was acute: China's gross domestic product growth slipped to 9.1% from 11.1% in the second quarter of 2003 while Hong Kong, Taiwan and Singapore all took a hit. The impact went beyond metrics such as lost working hours, mortality rates, treatment costs, consumer spending and aborted travel; there's the unquantifiable toll of generally avoiding social contact, too.Individual psychology also trickles up to affect companies. Investment and supply-chain decisions are governed by projections about demand during an epidemic and the recovery from it. Apple Inc. said Tuesday that revenue will disappoint because component manufacturers are seeking to contain the virus, in addition to the effect on sales of store closures and reticent shoppers. A day earlier, Nintendo Co. said it will struggle to get Switch consoles to U.S. and European markets because of a production bottleneck stemming from the virus.China's economy is more consequential than in 2003. Its citizens travel more widely and its companies are more intertwined in global capitalism. That restaurant visit forgone in Hong Kong may cost jobs in Hamburg. To limit the impact on growth, then, leaders need to think carefully about how to minimize our natural impulse to be afraid.In Singapore, the government is urging citizens to carry on with life, taking extra precautions to stay healthy and avoid panic-buying. Officials have asked for public trust and, in return, have pledged to keep people informed. That’s a far cry from Hong Kong, where businesses are on lockdown, schools are closed, basic amenities have been stripped from the shelves and public transportation is empty. We’re a long way from knowing what the economic and psychological costs of the current epidemic will be, not to mention the number of lives lost. But if Singapore strikes the right tone, it may well become the model for crisis management. To contact the author of this story: Daniel Moss at dmoss@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Daniel Moss is a Bloomberg Opinion columnist covering Asian economies. Previously he was executive editor of Bloomberg News for global economics, and has led teams in Asia, Europe and North America.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Walmart, Apple warn of coronavirus hit to bottom line
    Yahoo Finance

    Walmart, Apple warn of coronavirus hit to bottom line

    Yahoo Finance is maintaining a working list companies that have been affected by the outbreak, and are expected to feel the effects through the first half of the year.

  • Financial Times

    Hong Kong's Cathay Pacific: one company, two systems

    Six months ago, Fion, a flight attendant with Cathay Pacific Airways, avoided wearing face masks for fear of being associated with the pro-democracy protests that were rocking Hong Kong. Now, she wears a mask on all flights to and from mainland China to guard against the coronavirus that has killed more than 1,800 people since it broke out in Wuhan in December. Fion's mask confusion reflects the twin challenges facing Hong Kong's biggest and oldest airline.

  • Financial Times

    Cathay Pacific warns of financial hit as coronavirus grounds half of flights

    Cathay Pacific, Hong Kong’s de facto flag carrier, has warned that the coronavirus will hit its financial performance “significantly” after the outbreak forced it to ground almost half of its flights. The airline’s traffic figures, published on Monday, showed a sharp decline in passenger numbers and cargo volumes since the outbreak of the virus.

  • Cathay Pacific flags 'significant'drop in H1 profit, capacity cuts due to coronavirus
    Reuters

    Cathay Pacific flags 'significant'drop in H1 profit, capacity cuts due to coronavirus

    Severe travel restrictions as a result of a coronavirus outbreak in China, which has caused about 1,770 deaths across mainland China, have led to a steep rise in flight cancellations. Flight cancellations have led the number of customers seeking refunds to skyrocket. The carrier, which is the most exposed airline outside mainland China to a demand crunch related to the coronavirus, also said in a statement it had cut capacity by 40% for February and March, against an earlier planned 30% cut.

  • Cathay Pacific flags 'significant' drop in first-half profit, capacity cuts due to coronavirus
    Reuters

    Cathay Pacific flags 'significant' drop in first-half profit, capacity cuts due to coronavirus

    Severe travel restrictions as a result of a coronavirus outbreak in China, which has caused about 1,770 deaths across mainland China, have led to a steep rise in flight cancellations. Flight cancellations have led the number of customers seeking refunds to skyrocket. The carrier, which is the most exposed airline outside mainland China to a demand crunch related to the coronavirus, also said in a statement it had cut capacity by 40% for February and March, against an earlier planned 30% cut.

  • Cathay Pacific asks employees to take unpaid leave as virus hits demand
    Reuters

    Cathay Pacific asks employees to take unpaid leave as virus hits demand

    Hong Kong's Cathay Pacific Airways asked its 27,000 employees to take three weeks of unpaid leave, saying preserving cash was key for the carrier and that conditions were as grave as during the 2009 financial crisis due to the virus outbreak. Cathay is also asking suppliers for price reductions, putting in place hiring freezes, postponing major projects and stopping all non-critical spending, Chief Executive Augustus Tang said in a video message to staff seen by Reuters. On Tuesday, the carrier said it planned to cut about 30% of capacity over the next two months, including about 90% of flights to mainland China.

  • Reuters

    FOREX-Yen soft, but weak yuan and Sing dollar tumble flag virus risks

    The dollar held gains against the safe-haven yen on Wednesday as China's response to the coronavirus outbreak raised hopes it could be contained, even as the death toll rose sharply. The mainland China toll rose by a new daily record of 65 to 490. The Japanese currency nursed losses on Wednesday - last trading near a week-low at 109.45 yen per dollar.

  • Reuters

    WRAPUP 8-China virus hits cruise ships, carmakers, airlines and Airbus

    GENEVA/BEIJING, Feb 5 (Reuters) - Thousands of passengers and crew on two cruise ships in Asian waters were placed in quarantine for China's coronavirus on Wednesday as airlines, carmakers and other global companies counted the cost of the fast-spreading outbreak. A multinational WHO-led team would go to China "very soon", it added. China said another 65 people had died in the previous 24 hours, in the highest daily total yet, taking the overall toll on the mainland to 490, most in and around the locked-down central city of Wuhan, where the new virus emerged late last year.

  • Reuters

    FOREX-Dollar holds gains vs yen, virus risks dominate

    The dollar held gains against the yen on Wednesday amid a broad unwinding of safe-haven positions as China's responses to the coronavirus outbreak supported investor confidence, even as deaths and new cases climbed. The coronavirus outbreak claimed its first life in Hong Kong on Tuesday, as the mainland China death toll rose by 65 to 490 and the number of cases rose to 24,324. Some 99% of cases are in China, which has responded with drastic quarantine measures and the injection of 1.7 trillion yuan ($243 billion) into the financial system.

  • Airlines Aren’t About to Succumb to the Coronavirus
    Bloomberg

    Airlines Aren’t About to Succumb to the Coronavirus

    (Bloomberg Opinion) -- Airlines are perpetually on the alert against crashes. That doesn’t mean the coronavirus epidemic will lead to any corporate disasters.The outbreak that originated in the Chinese city of Wuhan could push some airlines in Asia to the wall, according to Alan Joyce, chief executive officer of Australia’s biggest carrier Qantas Airways Ltd. “A lot of airlines may not be able to keep some of these operations going,” he told Angus Whitley and Kyunghee Park of Bloomberg News. “It’s survival of the fittest.”Such an outcome would provoke some schadenfreude at Qantas, the best-performing full-service carrier in a Bloomberg index of Asia-Pacific airlines over the past year. At the same time, it’s hard to point to any major company that’s plausibly close to the edge. While the aviation industry is perpetually teetering on the edge of profitability, one of the main reasons is that so many carriers are controlled by indulgent shareholders who will go to extraordinary lengths to see their businesses through rough patches.The impact of the epidemic is likely to be sharp. In 2003, SARS caused Asia-Pacific carriers to lose $6 billion in revenue and 8% of their traffic, according to the International Air Transport Association.At the same time, it will probably be short, too. As we’ve written, coronaviruses are winter diseases that should be well and truly in retreat by late spring. Should control measures now being implemented prove effective, recovery could be under way even sooner. If SARS is any guide, that will trigger a surge of pent-up demand from leisure and business travelers.Then there’s the fact that people around the world don’t just decide to stop travelling because there’s a virus outbreak in China. Indeed, the more likely response in many countries will be to encourage tourists to stay closer to home. That may benefit airlines’ domestic aviation businesses, which tend to be more profitable than longer-haul international arms.China’s market has remained frustratingly closed. Right now, that may be a blessing. About two-thirds of the passenger traffic beginning or ending at Chinese airports is operated by mainland carriers or Hong Kong-based Cathay Pacific Airways Ltd. The remaining traffic with a Chinese leg represents only about 5.7% of the global market, so only the most China-exposed operators are likely to see a material shock.Some airlines are clearly more vulnerable than others. Thailand, a major destination for Chinese tourists, is home to four struggling carriers where fierce competition has driven passenger revenue below operating costs, causing the listed industry to lose about three-quarters of its market capitalization in the past three-and-a-half years.Still, while all four are failing to pay their interest expenses out of income and only Thai Airways International Pcl can boast positive free cash flow, other factors may support them.Bangkok Airways Pcl was founded and is controlled by Prasert Prasarttong-Osoth, who may do quite well over the next few months since his fortune is based on operating private hospitals. Nok Airlines Pcl has a similar relationship with the Jurangkool auto-parts dynasty, and had already been acquiring fresh loans and capital infusions to keep its planes in the air. Thai Airways, which quashed speculation of imminent bankruptcy last year, is majority-owned by the government, while Asia Aviation Pcl is the local arm of the AirAsia Bhd empire, so should be able to count on similar support from head office.There’s no shortage of forgiving shareholders among cash-strapped airlines elsewhere in the region. PT Garuda Indonesia is, like Thai Airways, controlled by the government; PAL Holdings Inc. by Philippines billionaire Lucio Tan. Asiana Airlines Inc. and Virgin Australia Holdings Ltd. have been struggling for years, but the former was bailed out by a consortium of local investors in December while the latter has a long history of being supported by offshore airlines interested in keeping Qantas on the backfoot in its home market.It’s a similar picture in China itself, which will take the brunt of the impact. Only Air China Ltd. has been consistently racking up positive free cash flow of late, but every major listed carrier has ample interest coverage so shouldn’t be fearing imminent talks with creditors.Those that are state-owned enterprises will be able to count on the state standing behind them; Hainan Airlines Holding Co., which isn’t exactly, is already being looked after as part of the multi-year workout of the buying spree that its controlling shareholder HNA Group Co. went on in the middle part of the last decade.Cathay, for its part, has endured an annus horribilis but has for generations been a favorite child of its largest shareholder Swire Pacific Ltd. Like Virgin Australia, it has enough deep-pocketed owners to see it through a rough patch.That doesn’t mean that the region’s airlines won’t struggle over the months ahead. Still, the dream scenario for Qantas — where competitors go under and take some capacity out of Asia’s fiercely competitive market — may remain just that: a dream.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Coronavirus update: US records first human-to-human transmission as WHO declares global emergency
    Yahoo Finance

    Coronavirus update: US records first human-to-human transmission as WHO declares global emergency

    World Health Organization meets amid growing travel bans over coronavirus.

  • Designing a Better Airline Lounge Experience
    Skift

    Designing a Better Airline Lounge Experience

    The competition for the premium traveler is one of the fiercest in all of the aviation industry. There’s an escalating standard across the board, but particularly in the end-to-end of the experiences. Lounges play a huge role in this. Despite the investment and polish that goes into them, however, there’s still a lot of original […]

  • British Airways and Lufthansa add to growing number of airlines cancelling flights to contain coronavirus
    MarketWatch

    British Airways and Lufthansa add to growing number of airlines cancelling flights to contain coronavirus

    British Airways halts flights after U.K. government warns citizens to avoid all but essential travel to China.

  • Reuters

    No hot meals, blankets, magazines as airlines step up fight on virus

    Passengers on some flights to China will have to make do without hot meals or blankets and newspapers, as airlines step up measures to protect crew and travellers from a coronavirus that has killed more than 130 in the country. Seeking to contain the spread of the new virus by reducing personal contact, Taiwan's China Airlines said it is encouraging passengers to bring their own beverage bottles and would limit re-usable items by replacing them with disposables. The airline and its regional arm Mandarin Airlines have stopped from Monday serving hot meals and replaced tablecloths and napkins with paper towels on cross-strait and Hong Kong flights.

  • Coronavirus update: Vaccine stocks retreat and airport screening expands to 20 U.S. airports
    MarketWatch

    Coronavirus update: Vaccine stocks retreat and airport screening expands to 20 U.S. airports

    A nearly weeklong rally for vaccine and diagnostics developers looking to capitalize on the coronavirus outbreak ended on Tuesday.

  • Reuters

    Facebook, others restrict business travel to China as warnings grow

    SHANGHAI/SEOUL, Jan 28 (Reuters) - Facebook Inc and other global companies including LG Electronics Inc and Standard Chartered Plc are restricting travel to China, as the death toll from a flu-like virus rose above 100 on Tuesday. Airlines are also cancelling flights and adjusting schedules as a growing number of countries raise travel warnings to not just Hubei province where the new coronavirus broke out, but also to the rest of mainland China. The United States warned on Monday that Americans should "reconsider" visiting all of China, while South Korea elevated its travel warning on Tuesday, advising its citizens to refrain from visiting China.

  • It’s Hard to Pull Off 3 Billion Trips During a Pandemic
    Bloomberg

    It’s Hard to Pull Off 3 Billion Trips During a Pandemic

    (Bloomberg Opinion) -- There’s never a good time for the outbreak of a deadly virus, but this one is particularly bad. China’s Lunar New Year is often dubbed the world’s largest migration, a stretch of weeks when hundreds of millions of people visit their families. Before the pandemic started spreading, officials were expecting 3 billion airplane and train trips during the holiday rush between Jan. 10 and Feb. 18. Millions more have gone abroad.Little wonder, then, that the travel industry is suffering. With the death toll up to 25 and more than 800 infected, tourists are staying home. Some have no choice: The government has put seven cities on lockdown and airports are stepping up screening measures. On Friday, China ordered all travel agencies to suspend sales of domestic and international tours.Shares of China Southern Airlines Co. – the carrier most exposed to the site of the outbreak – have slid 14% since the second death from the virus was confirmed, while Cathay Pacific Airways Ltd., which said it would waive fees for tickets to and from the mainland, has slumped 7.6%. The country’s largest online travel agency, Trip.com Group Ltd. has tumbled 12%.If the SARS outbreak of 2003 is any guide, things could get even worse. In May of that year, Chinese air passenger traffic fell 71%, according to Goldman Sachs Group Inc. Bernstein Research cited concerns of a repeat outcome when it cut Trip.com’s rating one notch to “market perform” earlier this week. The Nasdaq-listed company, which changed its name from Ctrip.com last year, issued a statement Thursday saying it would refund travelers who’ve been diagnosed, or those in close touch with them.The hope is that, like SARS, the turbulence will eventually pass. For Trip.com, however, the business challenges are bigger than the coronavirus. In recent years, the company has struggled to keep up with competition from digital rivals like Meituan Dianping and Alibaba Group Holding Ltd.Few travel companies have benefited more from China’s transition to the world’s biggest source of tourists in 2012. Despite the trade war and Hong Kong’s protests,(3) China’s outbound tourism numbers have continued to rise. According to Euromonitor International, 108.39 million overseas trips were taken last year, a 9.5% gain, after surging 11.7% in 2018. Trip.com now makes up a quarter of its total sales from outbound Chinese visitors, from under 15% five years ago, reckons Bloomberg Intelligence analyst Vey-Sern Ling.But the hotel-booking sector is getting crowded. Meituan Dianping has recently overtaken Trip.com as China’s top site, just five years after the food-delivery giant started dabbling in the business. Meituan now has 47% of China's market, ahead of Trip.com, with 34%, according to TrustData. Now, Meituan is moving further into Trip.com’s territory with luxury hotels, while chains like Marriott International Inc. are pushing for direct booking on their China websites. Alibaba said part of the $13 billion it raised from its Hong Kong listing in November would go toward fliggy.com, its online travel group site.If there’s any lesson to be gleaned from all this, it’s the benefit of diversification. While China’s superapp business model has arched some eyebrows (how can one company possibly provide digital payments, taxis, food delivery, massages and pet grooming?) there’s a decent case to be made for having some crisis-proof subsidiaries. Consider AirAsia Group Bhd, Southeast Asia's most successful budget airline, which is setting up a regional fast food franchise.Plans could already be underway for Trip.com to diversify its investor base, with the company discussing plans to go public in Hong Kong, Bloomberg News reported earlier this month. Here, Alibaba is a successful model. With its second listing, the company is now closer to its Chinese end-users, and Alibaba’s New York-listed stock has soared 14%.The four-month span of the SARS outbreak shows how quickly things can turn around: While China’s growth dipped in the second quarter of 2003, it swiftly resumed in the following months. Given how much more important the Chinese shopper is to the economy now, the damage could be more painful. A 10% fall in discretionary transportation and entertainment could shave 1.2 percentage points from China’s growth domestic product, according to “back of the envelope” estimates by S&P Global Inc. Hong Kong retailers and restaurants, just coming off the pain of last year's protests, were already suffering. For those companies that enjoyed the fast-rising Chinese consumer, it may be time to devise a plan B. (Updates to include China’s measures to suspend travel-agency sales.)(1) Hong Kong, followed by Macau, are the top two destinations of mainland Chinese travelers.To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.