Cathay Pacific sees six-fold rise in 1H net profit

The Cathay Pacific Group has reported an attributable profit of HK$1,972 million (US$254.4 million) for the first six months of 2015. This compares to a profit of HK$347 million in the first half of 2014. Revenue for the period decreased by 0.9 per cent to HK$50,388 million.


The Cathay Pacific Group has reported an attributable profit of HK$1,972 million (US$254.4 million) for the first six months of 2015. This compares to a profit of HK$347 million in the first half of 2014. Revenue for the period decreased by 0.9 per cent to HK$50,388 million.

The Group’s performance in the first six months of 2015 was considerably better than in the same period in 2014, Cathay noted citing higher load factors in the Group’s passenger business as a key reason. There was an improved contribution from subsidiary and associated companies and Air China’s profits were significantly higher, principally as a result of lower fuel prices.

The increase in demand in air cargo, which began in summer 2014, continued during the first few months of 2015, but slackened in the second quarter. The Group’s cargo revenue for the period was HK$11,376 million, a decrease of 2.5 per cent compared to the same period in 2014. Capacity for Cathay Pacific and Dragonair grew by 8.9 pr cent and the load factor increased by 0.9 percentage points to 64.1 per cent.

But Cathay said strong competition, overcapacity in the industry and a significant reduction in fuel surcharges put downward pressure on yield, which dropped by 11.1 per cent to HK$1.93.