Cargo business “problematic” says Cathay chairman
The Cathay Pacific Group has announced an attributable profit of HK$2.6 billion (US$334.9 million) for 2013, compared to a profit of HK$862 million (restated) in the previous year.
April 1, 2014
The Cathay Pacific Group has announced an attributable profit of HK$2.6 billion (US$334.9 million) for 2013, compared to a profit of HK$862 million (restated) in the previous year. Turnover for the year increased by 1.1 per cent to HK$100.5 billion. The Group’s cargo revenue in 2013 was HK$23.7 billion, a decline of 3.6 per cent compared to the previous year.
The improvement in the Group’s performance in 2013 was largely due to the strengthening of its passenger business and the positive impact of measures introduced in 2012 to protect the business from the high price of jet fuel. The cargo business continued to be affected by strong competition and weak demand, although there was some seasonal improvement in the last quarter of 2013. The business overall continued to be affected by the sustained high price of jet fuel, which accounts for 39 per cent of total operating costs in 2013.
“The operating environment remained challenging throughout 2013, for the Group and the aviation industry as a whole,” said Cathay Pacific chairman Christopher Pratt. “The cargo business continues to be problematic. There is still no sign of any sustained improvement in the market and some changes in the business appear now to be structural rather than cyclical. We thus have reduced the size of our freighter fleet and at the same time increased its efficiency.