THE Cathay Pacific Group reported an attributable profit of HK$24 million ($3.09 million) for the first six months of 2013. This compares to a restated loss of HK$929 million ($120 million) in the first half of 2012.
The group continued to operate in a challenging business environment in the first half of 2013, though there was improvement in its passenger business. Demand in the major air cargo markets remained weak. The persistently high price of jet fuel continued to have an adverse effect on business. Share of losses from associated companies increased.
Cathay Pacific chairman Christopher Pratt said: “While we continued to operate in a difficult environment in the first six months of 2013, it was pleasing to see some improvement in our business. This improvement mainly reflected stronger passenger business and cost reductions. Our financial position remains strong and we will continue to invest to make our business stronger. We will remain focussed on our long-term goals while managing short-term challenges.”
The passenger business of Cathay Pacific and Dragonair (a wholly-owned subsidiary of Cathay) improved in the first half of 2013 compared to the same period in 2012. Revenue increased by 0.8 per cent to HK$34.97 billion ($4.51 billion), although capacity decreased by 4.8 per cent.
The group’s cargo revenue for the first half of 2013 was down by 5.2 per cent to HK$11.27 billion ($1.45 billion) compared to the same period in 2012. However, the new cargo terminal at Hong Kong International Airport is expected to be fully operational by the last quarter of 2013, which will reduce costs and improve efficiency in the group’s cargo business.
The group continued to modernise its fleet, taking delivery of six new aircraft – two Airbus A330-300 aircraft, three Boeing 777-300ER aircraft and one Boeing 747-8F freighter – in the first six months of 2013.
All of the long-haul passenger frequencies that were cancelled as part of 2012’s cost reductions are now being restored. A fifth daily frequency was added to London in June and the airline will, subject to government approval, add a new four-times-weekly service to Male in the Maldives in October 2013 and a new daily service to Newark in the US. in March 2014. Dragonair continued to strengthen its regional network, adding services to Da Nang, Wenzhou, Yangon and Zhengzhou and will, subject to government approval, add a new three-times-weekly seasonal service to Siem Reap in Cambodia in October 2013. Guadalajara in Mexico will be added to the cargo network in the last quarter of 2013.
On the product side, the group has begun upgrading its seats across the First, Business and Economy Classes as well its inflight entertainment system.