Cathay Pacific’s profits up 24% in 2006

Cathay Pacific’s profits up 24% in 2006 Hong Kong-based Cathay Pacific Airways reported a profit of HK$4.1 billion ($523 million) in 2006, up 24 percent from HK$3.3 billion in the previous year.
   Cathay Pacific’s annual result includes a three-month contribution from compatriot airline Dragonair, which became a wholly owned subsidiary on Sept. 28.
   Annual revenue increased 19.4 percent to HK$60.8 billion ($7.8 billion), compared to HK$50.9 billion in 2005. Cathay Pacific’s fuel bill rose 29.7 percent to HK$20.2 billion ($2.6 billion), which the airline said was only partially offset by fuel surcharges.
   Cathay Pacific’s cargo revenue in 2006 improved 3.4 percent to HK$12 billion ($1.5 billion) as it carried a record 1.2 million tons of freight. The cargo load factor increased 1.3 percentage points to 68.3 percent. However, the airline said that increased competition and weaker demand for exports out of Australia, Europe and the United States led to a decrease in cargo yield to HK$1.69 (21.6 cents).
   During the year, Cathay Pacific added two Boeing 747-400 converted freighters, swelling its fleet to 18 aircraft and added Beijing, Chennai, Stockholm and Toronto as new freighter destinations.
   Christopher Pratt, Cathay Pacific’s chairman, said that in 2007 he expects to see synergies emerge from its takeover of Dragonair “though we expect to face challenges from ever-increasing competition and high, volatile fuel prices.”