The airline group reported profits attributable to its shareholders increased 468.3 percent for the first half of 2015 in comparison to the same period last year.
The Cathay Pacific Group reported profits attributable to the shareholders increased 468.3 percent to HK$1.97 billion (U.S. $254 million) for the first-half of 2015 in comparison to the corresponding period in 2014.
Earnings per share were HK50.1 cents per share in the first half of 2015 compared to HK8.8 cents for the first half of 2014. Revenues stood at HK$50.39 billion, a year-over-year drop of 0.9 percent.
According to its most recent financial statements, Cathay Pacific Group’s passenger business reported higher load factors in the first half of 2015 in comparison to the same period last year. The demand increase in air cargo markets that began in the summer of 2014 carried over into the first quarter of 2015, however it dwindled by the second quarter. The group also reported an increase in contribution from subsidiary and associated companies. Member line Air China had significantly higher profits, which resulted from lower fuel prices.
Cathay Pacific Group’s fuel costs, before the effect of fuel hedging, saw a year-over-year drop of 35.5 percent to HK$12.88 billion. Fuel still remained the most significant cost and accounted for 34.2 percent of total operating costs for the first half of 2015.
Cargo revenues for the group saw a year-over-year drop of 2.5 percent to HK$11.38 billion for the first half of 2015. Cathay Pacific and Dragonair increased capacity 8.9 percent, but saw a downward pressure on yield, which fell 11.1 percent to HK$1.93. Cathay Pacific Group attributed the yield decline to strong competition, overcapacity in the industry and the drop in fuel surcharges.
Cathay Pacific Group said it expects the cargo business to be stable for the second half of the year. The group projects more competition on its transpacific routes, while intra-Asia shipments traffic will continue to grow.
“We usually perform better in the second half of the year than in the first. We expect our business to do well in the remainder of 2015,” Cathay Pacific Chairman John Slosar said of the results. “We will focus on providing high-quality products and services. We will continue to invest in aircraft, in our products and in the development of our network. Our financial position remains strong.”
Cathay Pacific reports strong first-half results
