Cathay Pacific Airways Limited Announces 2014 Interim Results

Published on : Wednesday, August 13, 2014

cathay-pacificThe Cathay Pacific Group reported an attributable profit of HK$347 million for the first six months of 2014. This compares to a profit of HK$24 million in the first half of 2013.

Earnings per share were HK8.8 cents compared to earnings per share of HK0.6 cents for the corresponding period in the previous year. Turnover for the period rose by 4.6% to HK$50,840 million.

A number of factors had a significant negative impact on the Group’s business in the first six months of 2014.

 

The principal adverse factors were reduced passenger yield, continued weakness and over- capacity in the air cargo market, the continued high fuel price and a weak performance from an associated company, Air China.

Fuel remains the Group’s most significant cost. In the first half of 2014 fuel costs increased by 5.2% compared to the same period in 2013.

 

Fuel accounted for 37.9% of total operating costs, which represents a 0.9 percentage point decrease compared with the corresponding period in 2013.

 

In the first half of 2014, hedging activities resulted in a gain of HK$1,024 million. A significant amount of this gain is unrealised.

 

Cathay Pacific continues to increase fuel efficiency by modernising its fleet. It is also focused on controlling costs.

The Group’s passenger revenue in the first six months of 2014 increased by 4.4% to HK$36,520 million compared to the same period in 2013. Capacity increased by 5.3% as a result of the introduction of new routes (to Doha and Newark) and increased frequencies on existing long-haul routes.

 

The load factor increased by 2.3 percentage points to 83.6%, but the increase in passenger numbers was at the expense of yield, which fell by 3.5% to HK66.6 cents.

 

Passenger demand was strong in all classes of travel on long-haul routes.

Demand on regional routes was generally robust, although strong competition put downward pressure on yield and demand was weak on certain Southeast Asian routes.

The Group’s cargo revenue for the first half of 2014 was HK$11,663 million, a rise of 3.4% compared to the same period in the previous year.

 

Yield for Cathay Pacific and Dragonair decreased by 6.9% to HK$2.17. Capacity increased by 10.8%, while the load factor rose by 0.8 percentage points to 63.2%.

Over-capacity in the industry remains a major concern and has made it difficult to increase rates.

The airlines continued to manage capacity in line with demand in the first half of 2014.

 

More cargo was carried in the bellies of passenger aircraft, reflecting increased use of Boeing 777-300ER aircraft.

Its new cargo terminal in Hong Kong is operating smoothly and now provides services for airlines outside the Cathay Pacific Group.

Source:- Cathay Pacific

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