Cathay Pacific set to swing back into profit in 2018

posted on 20th February 2019 by Justin Burns

Cathay Pacific has reported it expects to record a consolidated of approximately HK$2.3 billion (US$293 million) in 2018 – which compares to an attributable loss to shareholders of HK$1,259 million for the year ending 31 December 2017.

The airline said in a corporate announcement that last year, the cargo business was strong and capacity, yield and load factors increased while the passenger business benefited from capacity growth, a focus on customer service and improved revenue management. Load factors were sustained and yield improved despite competitive pressures.

Cathay Pacific added: “The Company’s transformation programme has had a positive impact. The Company is still in the process of finalising the Group’s annual results for the year ended 31st December 2018.

“The information contained in this announcement is only based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31st December 2018 which have not been audited or reviewed by the external auditors of the Company.”

Meanwhile, Cathay Pacific has also reported its traffic figures for January this year and said Cathay Pacific and Cathay Dragon carried 166,735 tonnes of cargo and mail last month, a decrease of 3.4 per cent compared to the same month last year.

The cargo and mail load factor fell by 3.8 percentage points to 61.6 per cent. Capacity, measured in available freight tonne kilometres (AFTKs), was increased by 0.8 per cent while cargo and mail revenue freight tonne kilometres (RFTKs) decreased by 5.2 per cent.

Cathay Pacific Director Commercial and Cargo Ronald Lam said: “Chinese New Year this year was earlier than last, leading to a slight distortion in both passenger and cargo revenue for January and February.

“Cargo uplift gradually picked up before Chinese New Year but the pre-holiday rush was not as strong as last year. As a result, our cargo revenue recorded small negative year-on-year growth in January. Some short-term capacity rationalisation was made to better match demand.”