The Cathay Pacific Group has reported a loss of HKD 935 million for the first six months of 2012. The company had made a profit of HKD 2,808 million in the first half of 2011. Turnover for the period rose by 4.4 per cent to HKD 48,861 million.
In the first six months of 2012, the passenger business of the Cathay Pacific Group was affected by pressure on yields due to increased fuel prices and higher operating costs. Revenue for the period was HKD 34,713 million, representing an increase of 9.2 per cent compared to the same period in 2011.
Capacity increased by 6.9 per cent. A total of 14.3 million passengers were carried by Cathay Pacific and Dragonair in the first six months, which is a rise of 8.6 per cent compared to the same period in 2011. The load factor rose by 0.8 percentage points. The high cost of fuel made it more difficult to operate profitably, particularly on long-haul routes operated by older, less fuel-efficient, Boeing 747-400 and Airbus A340-300 aircraft. In the first half of 2012, Cathay Pacific’s core business was significantly affected by the persistently high price of jet fuel, passenger yields coming under pressure. Profits from associated companies, including Air China, also showed a decline. Christopher Pratt, Chairman, Cathay Pacific, said: “Aviation will always be a volatile and challenging industry and our business will always be subject to factors, including economic fluctuations and fuel prices, which are beyond our control. The cost of fuel is the biggest challenge, although the recent reduction in the fuel price will, if sustained, provide welcome relief. We will continue to take whatever measures are necessary to protect the business, managing short-term difficulties while remaining committed to our long-term strategy. Our financial position remains strong and we are in a good position to deal with our current challenges. We will continue to invest in the future, using our core strengths – a superb team, a strong international network, exceptional standards of customer service, a strong relationship with Air China and our position in Hong Kong – to ensure the continued success of the Cathay Pacific Group.”
Click here to see the original article>Capacity increased by 6.9 per cent. A total of 14.3 million passengers were carried by Cathay Pacific and Dragonair in the first six months, which is a rise of 8.6 per cent compared to the same period in 2011. The load factor rose by 0.8 percentage points. The high cost of fuel made it more difficult to operate profitably, particularly on long-haul routes operated by older, less fuel-efficient, Boeing 747-400 and Airbus A340-300 aircraft. In the first half of 2012, Cathay Pacific’s core business was significantly affected by the persistently high price of jet fuel, passenger yields coming under pressure. Profits from associated companies, including Air China, also showed a decline. Christopher Pratt, Chairman, Cathay Pacific, said: “Aviation will always be a volatile and challenging industry and our business will always be subject to factors, including economic fluctuations and fuel prices, which are beyond our control. The cost of fuel is the biggest challenge, although the recent reduction in the fuel price will, if sustained, provide welcome relief. We will continue to take whatever measures are necessary to protect the business, managing short-term difficulties while remaining committed to our long-term strategy. Our financial position remains strong and we are in a good position to deal with our current challenges. We will continue to invest in the future, using our core strengths – a superb team, a strong international network, exceptional standards of customer service, a strong relationship with Air China and our position in Hong Kong – to ensure the continued success of the Cathay Pacific Group.”