Cathay Pacific’s profits down 25% in 2005
Hong Kong-based Cathay Pacific Airways reported a profit of HK$3.3 billion ($425 million) in 2005, down 25 percent from HK$4.4 billion in the previous year.
The airline’s annual fuel bill soared 67 percent to HK$15.6 billion ($2 billion).
Revenue increased 19 percent to HK$50.9 billion ($6.5 billion), compared to HK$42.8 billion in 2004.
Cathay Pacific said it carried a record 1.1 million tons of cargo in 2005, delivering best-ever cargo revenue of HK$11.6 billion ($1.5 billion). However, both yield and load factor decreased to HK$1.75 (23 cents) and 67 percent, respectively, “due to increased competition and a slowdown in the growth of exports from South China.”
“Looking forward, we remain optimistic about our future, although our 2006 results are likely to remain heavily dependent on fuel prices and related surcharges,” said Christopher Pratt, Cathay Pacific’s chairman.