13-03-2014, 09:51 AM
Cathay seems doing better than SIA...
(not vested in any airline stock)
Cathay Pacific’s annual profit triples despite dip in cargo revenue
HONG KONG — Cathay Pacific Airways said yesterday its annual profit tripled as higher travel demand helped the Hong Kong-based firm mask a decline in cargo revenue.
Unlike its key Asian rivals such as Singapore Airlines, Cathay’s strength in long-haul flights has helped it fend off rising pressure on yields in the medium- and short-haul market within Asia, where a proliferation of low-cost carriers is hitting fares for short-haul economy-class seats.
The airline’s more spacious seats in the economy category have been particularly popular on long flights to Europe and the United States, and command prices that are on average 80 per cent higher than those for regular economy-class seats, said UOB Kay Hian analyst K Ajith.
Net profit came in at HK$2.6 billion (S$425 million) last year, up from 2012’s restated earnings of HK$862 million, said the carrier. The result was in line with the average HK$2.74 billion forecast in a Wall Street Journal poll. Revenue rose 1.1 per cent to HK$100.5 billion.
Cathay had fitted 85 of its medium- and long-haul aircraft with premium economy-class seats as at the end of last year, raising the prospect this year of higher passenger yields or revenue per passenger mile.
“Business outlook for this year looks to improve compared with 2013,” said Chairman Christopher Pratt in a statement, though he warned that fuel prices would probably remain high.
Fuel costs, which accounted for 39 per cent of operating costs, fell 5.8 per cent to HK$38.13 billion last year on lower oil prices.
The airline said it carried nearly 30 million passengers last year, an increase of 3.3 per cent. Passenger yields on North American and European routes rose 8.3 per cent and 3.6 per cent respectively, compared with an overall increase of 1.8 per cent.
Cathay’s higher earnings on a rebound in travel demand may signal a positive start to the year for other Asian carriers, whose earnings have been hit by intensifying competition from Middle Eastern carriers and high fuel prices.
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http://www.todayonline.com/business/cath...go-revenue
(not vested in any airline stock)
Cathay Pacific’s annual profit triples despite dip in cargo revenue
HONG KONG — Cathay Pacific Airways said yesterday its annual profit tripled as higher travel demand helped the Hong Kong-based firm mask a decline in cargo revenue.
Unlike its key Asian rivals such as Singapore Airlines, Cathay’s strength in long-haul flights has helped it fend off rising pressure on yields in the medium- and short-haul market within Asia, where a proliferation of low-cost carriers is hitting fares for short-haul economy-class seats.
The airline’s more spacious seats in the economy category have been particularly popular on long flights to Europe and the United States, and command prices that are on average 80 per cent higher than those for regular economy-class seats, said UOB Kay Hian analyst K Ajith.
Net profit came in at HK$2.6 billion (S$425 million) last year, up from 2012’s restated earnings of HK$862 million, said the carrier. The result was in line with the average HK$2.74 billion forecast in a Wall Street Journal poll. Revenue rose 1.1 per cent to HK$100.5 billion.
Cathay had fitted 85 of its medium- and long-haul aircraft with premium economy-class seats as at the end of last year, raising the prospect this year of higher passenger yields or revenue per passenger mile.
“Business outlook for this year looks to improve compared with 2013,” said Chairman Christopher Pratt in a statement, though he warned that fuel prices would probably remain high.
Fuel costs, which accounted for 39 per cent of operating costs, fell 5.8 per cent to HK$38.13 billion last year on lower oil prices.
The airline said it carried nearly 30 million passengers last year, an increase of 3.3 per cent. Passenger yields on North American and European routes rose 8.3 per cent and 3.6 per cent respectively, compared with an overall increase of 1.8 per cent.
Cathay’s higher earnings on a rebound in travel demand may signal a positive start to the year for other Asian carriers, whose earnings have been hit by intensifying competition from Middle Eastern carriers and high fuel prices.
...
http://www.todayonline.com/business/cath...go-revenue