Cathay Pacific 2010 profits increase 199.3pc to US$1.41 billion

HONG KONG's Cathay Pacific Airways, together with its sister operator Dragonair, and input from its other aviation investments, enjoyed a 199.3 per cent net profit increase in 2010 year on year to HK$14.04 billion (US$1.41 billion) on a 33.7 per cent increase in revenue to HK$89.52 billion.


The group's cargo revenue increased 50.1 per cent to HK$25.9 billion. Freight carried by Cathay Pacific and Dragonair increased 18.1 per cent to 1.8 million tonnes. Cargo capacity increased 15.2 per cent, as the airline returned mothballed freighters to service.


"Despite this increase in capacity, strength of demand was such that our load factor increased by 4.9 percentage points to 75.7 per cent. Demand in all key markets was strong, especially in October and November," said the Cathay statement accompanying the financial results.


"Business began to recover from the downturn in the latter part of 2009," said the statement. "The momentum was sustained throughout 2010. We also benefited from the strong profits earned by our associated company, Air China (which contributed HK$2,482 million to the 2010 result), from the aggregate profit of HK$2,165 million from the disposal of our interests in Hong Kong Air Cargo Terminals Limited (Hactl) and Hong Kong Aircraft Engineering Company Limited (HAECO) and from the profit of HK$868 million from the deemed disposal of part of our interest in Air China."


Cathay said eligible staff would receive a 2010 profit share of five weeks' salary plus either HK$6,000 or half of the staff's monthly salary, whichever is lower. "Under this formula, more than 60 per cent of staff will get a profit share of more than six weeks of salary, two weeks of which was already paid to all eligible staff in August. This profit share is on top of the 13th month discretionary bonus they received last December," said the company statement.


"Fuel remains our largest single cost, representing 35.6 per cent of the group's total operating costs. The fuel price increased during the year and was 28 per cent higher on average than in 2009. Our total fuel costs for 2010 (disregarding the effect of fuel hedging), reflecting both the higher price and increased operations, increased by 40.4 per cent," said the Cathay statement.
(Source:http://www.schednet.com)