Business Round-Up
Cathay Pacific returns to profit
September 1st 2013
Cathay Pacific Airways has reported a first half profit of HK$24 million (US$3.09 million) compared with a loss of HK$929 million for the same six months in 2012.Read More »
The Hong Kong-based carrier said a weak cargo market and reduced yields on some regional routes eroded the expected benefits of improved passenger demand. Cathay’s joint venture carrier, Air China Cargo, lost HK$400 million for the six months. The airline’s new cargo terminal at Hong Kong International Airport reported a HK$350 million loss.
Cathay achieved an 8.5% reduction in fuel costs for the reported period, but fuel “remains the most significant cost, accounting for 38.8% of total operating costs” for the six months, said a Cathay statement.
Load factor rose 1.2 percentage points to 81.3% and yield increased to 4.4%. Demand was strong on long-haul routes in all classes, but the regional traffic market did not match capacity increases on the routes.
Cathay and its wholly-owned subsidiary, Dragonair, suffered a 5.8% decline in cargo revenue, to HK$11.27 million, compared with the same period last year. Its new cargo terminal is planned to be fully operational by the end of this year, which will reduce costs and improve efficiency for the group’s cargo business, said the airline.
Airline chairman, Chris Pratt said: “While we continued to operate in a difficult environment in the first six months of 2013, it was pleasing to see an improvement in our business, mainly reflected by stronger passenger demand and cost reductions.”
