Fuel savings propel Cathay's profit
Airline to raise passenger capacity and cargo yields with help of more fuel efficient aircraft
Cathay Pacific Airways tripled its net profit last year to HK$2.62 billion largely on the back of savings in fuel costs and a slight improvement in passenger yields as Hong Kong's flagship carrier plans to expand cargo and passenger traffic in 2014.
The net was in comparison to 2012 earnings of HK$862 million. A HK$2.3 billion reduction in total fuel costs was the main contributor to the bottom line.
The fuel cost savings came from three main factors; a 3 per cent fall in fuel prices, hedging to trim the cost of fuel supplies and a reduction in the number of flights.
Passenger yields rose 1.8 per cent due to an increase in front cabin, business and first class customers, and in long-haul routes which padded net profits. Passenger revenues climbed 2.4 per cent in the year to HK$71.8 billion. The earnings were in line with market expectations of HK$2.65 billion.
Cathay is looking forward to further improvement this year.
"The business outlook for 2014 looks to be improved when compared to 2013," Cathay chairman Christopher Pratt said.
