News
Cathay posts best annual profit in five years, beating analysts’ forecasts
March 11th 2016
Cathay Pacific Airways chairman, John Slosar, on Wednesday announced the airline’s best annual results in five years, with the news that the airline almost doubled its profit, to HK$6 billion (US$773 million) in 2015, compared with 2014. Read More »
The 90.5% improvement was achieved despite the fact that average passenger yield declined by 11.4%, led by Australia, New Zealand, South Africa (-13.9%) and Europe (-12.7%). Average cargo yield dropped 13.2%. Slosar and the airline’s chief executive, Ivan Chu, said the declining yields were due to “weaker-than-expected demand” in the first and business class cabins. Economy bookings, they added, remained “strong”.
Cathay believed 2016 will be “challenging” as the economy goes through a downturn and “competitive markets” persist.
The carrier confirmed the first of its fleet of A350XWBs was on track to arrive at the airline in May. The airplane’s arrival is two months behind schedule following issues with seat supplier, Zodiac Aerospace. Slosar said the XWB will allow the carrier to “open many new destinations” and added the new airliners would be fitted with “completely new” business, premium and economy cabins.
Cathay’s on-time performance continued to dip in 2015, with 64.7% (-5.4%) of flights departing and arriving on schedule. This problem, which Cathay estimated cost it HK$1 billion last year, is expected to weigh heavily on the carrier until air traffic management improves and a third runway at Hong Kong International Airport (HKIA) is built.
The carrier’s overall load factor increased 2.4%, to 85.7%, as it took delivery of three A330-300s and six B777-300ERs in 2015. In the 12-month period, four B747-400s and four A340-300s were retired.
