Including gains from fuel hedging and sales of shares in a Hong Kong aircraft maintenance and repair company, Cathay had net profit of $604 million, compared to a loss of $1.7 billion in 2008. Revenue in 2009 fell 22.6 percent to $8.6 billion as the airline focused on cost reduction and profitable business. Cargo volume fell 7.1 percent to 1.5 million tons, while yield fell 26.9 percent, though the airline's load factor increased 4.9 percent in 2009.
Cathay's share structure changed in the second half of the year when major shareholders Swire Pacific and Air China upped their stake in Cathay by purchasing shares from fellow shareholder CITIC. In February, Cathay and Air China said they would launch a joint all-cargo airline this summer.
'While we welcomed the improvement in business in the latter part of 2009, we remain cautious about the prospects for 2010,' Cathay Pacific Chairman Christopher Pratt said. 'Revenues and yields remain below levels experienced prior to the recent downturn. That said, we have many things working in our favor, which will help to put us in a stronger position if the current recovery in the world economy is sustained. We launched a number of projects and initiatives at the beginning of 2009 designed to improve further the way we do things, particularly for our customers.'
