Cathay flying to a record high
Cathay Pacific produced a record-breaking year in 2006 even though the fuel bill continued to have an impact on the bottom line.
The airline announced a profit HK$4,088 million (US$523m) compared to a profit of HK$3,298 million (US$422m) the previous year.
The 2006 results include a three-month contribution from Dragonair, which became a wholly owned subsidiary of Cathay Pacific on 28 September 2006.
Group turnover again hit new highs, increasing 19.4% to a record HK$60,783 million
The fuel bill for the year was HK$20,214 million (US$2,586m)– up 29.7% on the previous year – with fuel surcharges only partially offsetting continued high fuel costs.
Efforts by the airline to increase productivity and reduce controllable overheads led to a 1.3% fall in unit cost excluding fuel.
The airline carried a record 16.7 million passengers in 2006, up from 15.4 million the previous year. Passenger revenue also hit a new high, rising 10.9% to HK$33,585 million, (US$4,296m) while continued strong demand from first and business class passengers helped to push yield up by 1.5% to HK47 cents.
Capacity, measured in terms of available seat kilometres, increased by 7.7% as the airline added new aircraft and further expanded its network.
The airline added two more passenger aircraft to its fleet last year, an Airbus A330-300 and a Boeing 777-300, and launched its latest passenger destination with a daily service to Shanghai.
Cathay Pacific chairman Christopher Pratt said: “Business was strong in 2006, with passenger demand in particular holding up well. However, high fuel prices continued to have an impact, despite easing off a little in the latter part of the year.
“Last year was a very significant one for Cathay Pacific as it celebrated its 60th anniversary as Hong Kong’s home carrier and sealed the deal that brought Dragonair into the Cathay Pacific Group and at the same time enhanced the airline’s strategic partnership with Air China.
“The synergies of that deal will begin to emerge more significantly in 2007, though we expect to face challenges from ever-increasing competition and high, volatile fuel prices.”
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026