Cathay Pacific’s first half profits flat

Cathay Pacific’s first half profits flat

   Cathay Pacific Airways reported a net profit of HK$1.75 billion ($225.5 million) for the first half 2006, the same amount as in the same six-month period last year.

   The Hong Kong-based airline’s operating profit dropped slightly to HK$2.12 billion ($272.2 million) from HK$2.14 billion in the first half 2005. Total revenue increased 13.4 percent to HK$27.1 billion ($3.5 billion), compared to HK$23.9 billion a year ago.

   Cathay’s fuel bill for the period jumped 30.4 percent to HK$8.7 billion ($1.1 billion).

   The airline carried 573,000 tons of cargo in the first half, a 10.6 percent improvement over last year, helping to improve cargo revenue by 5.5 percent to HK$6.3 billion ($811.8 million).

   In June, Cathay reached agreement to buy the outstanding 82.21 percent shares in Hong Kong Dragon Airlines Ltd. (Dragonair) that for HK$8.2 billion ($1.05 billion). The deal will make Cathay the largest airline in Asia as well as giving it far greater access into the mainland China market.

   “Our full-year results, which should benefit from the acquisition of Dragonair, will continue to be heavily influenced by the price of fuel and related surcharges,” said Christopher Pratt, Cathay’s chairman.