CathyPacific’sgrimoutlookcourtesyofrivalChineseandGulfCarriers

Cathay Pacific Airways Ltd., Asia’s biggest international carrier, scrapped its profit outlook and said the airline is doing a “critical review” of its business amid a deteriorating outlook.

Cathay Pacific’s results in the second half of the year “is no longer expected” to be better than that of the first half, the Hong Kong-based carrier said in a stock exchange statement Wednesday. In August, the airline reported an 82 percent slump in net income in the first six months of the year and warned that premium travel was declining.

Chief Executive Officer Ivan Chu has struggled to revive profits at Cathay Pacific amid a slump in passenger yields — a key measure of profitability in the industry. Rival Singapore Airlines Ltd. has also warned of tougher days as competition with Middle East carriers increases. With Chinese airlines offering more direct services to the U.S. and Europe from the mainland, Cathay Pacific’s Hong Kong hub is no longer so critical for travelers to use as a hub.

“The Middle Eastern airlines are taking away Cathay’s breakfast, lunch and dinner,” said Shukor Yusof, founder of independent aviation consulting firm Endau Analytics in Malaysia. “The next 12 to 18 months doesn’t look favorable unless they do something drastic. They need to stop the bleeding.”