Cathay “in good shape”, says chairman
HONG KONG – Cathay Pacific has announced record profits, posting HK$2,581 million (US$329m) in its 2007 interim results – up 54.7 per cent on the HK$1,668 million reported in 2006.
The result was largely driven by strong demand and rising yields on the passenger side of the operation.
Cathay Pacific chairman Christopher Pratt said, “This is a strong result, with record figures posted despite the impact of the drop in cargo demand and the continued impact of high fuel prices.
“The group is in good shape at the moment, and we are now seeing clear benefits resulting from the acquisition of Dragonair.”
Pratt said the second half of 2007 would be important for the airline “as we start to take delivery of our new long haul passenger fleet and have more aircraft flying with our groundbreaking inflight product”.
Group turnover was up from HK$27,086 million (US$3,459m) last year to HK$34,631 million – a rise of 27.9 per cent.
High fuel prices continued to impact on the airline. Fuel expenditure for the first six months increased to HK$10,553 million. Passenger and cargo fuel surcharges helped to offset this additional cost.
Cathay Pacific’s passenger revenue increased 14.6 per cent to HK$18,275 million and the airline carried a record number of passengers in the first six months of the year, with an increase of 4.1 per cent to 8.5 million.
This compares to a 2.9 per cent increase in capacity. Passenger yield was up 10.9 per cent to HK50.8 cents, mainly as a result of consistently strong demand from first and business class passengers, particularly on long haul routes.
The 2007 interim result is the first to include full figures from sister airline Dragonair.
Cathay Pacific added three more aircraft in the first half of 2007. A more significant growth in the fleet begins in the latter half of the year, with the arrival of two Airbus A330-300 regional aircraft in August and the airline’s first Boeing 777-300ER, Extended Range, aircraft in September.
A total of 23 of these long-range passenger aircraft are on firm order from Boeing, with five joining the fleet before the year-end.
All new long haul passenger aircraft entering the fleet will arrive fitted with Cathay Pacific’s new three-class product. Retrofits on the long haul aircraft already in service are currently underway, with a total of 15 aircraft fitted with the new cabins in service by the end of 2007.
The product is one of the most innovative in the air, featuring First Class suites, lie-flat Business Class beds with enhanced privacy, and a revolutionary Economy Class seat that reclines within a fixed shell to increase passenger comfort and personal space.
Ian Jarrett
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