Long-haul growth boosts Cathay profits
Cathay Pacific has more than doubled its pre-tax profit in the first half of 2014 largely thanks to the expansion of its long-haul network.
The carrier made a pre-tax profit of £53 million for the six months to the end of June compared to £26 million for the same period in 2013.
Overall capacity increased by 5.3% and helped raise revenue by 4.6% to £3.9 billion.
"This reflected the introduction of new routes and increased frequencies on existing long-haul routes, including those which took effect in the second half of 2013," said chairman John Slosar.
The airline has expanded its flights to the US, adding Newark in March, increasing capacity to Los Angeles in June and to Chicago this month.
"Business on the US routes was very strong in the first half of 2014. We have added a lot of capacity to the US and revenue has grown in line," it said in a financial statement.
Outside the US, Cathay launched Doha flights in March 2014 and will introduce a four-times-weekly service to Manchester in
December 2014 and a Hong Kong-Zurich route in March 2015.
But Slosar said it still faces ‘significant competition in our passenger business’ which ‘makes it difficult to maintain yields’.
But he added: "We expect business to be better in the second half of 2014. Our financial position remains strong and will enable us, despite the current difficult trading conditions, to maintain the quality of our products and services and to continue with our long-term strategic investment in the business."
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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