Cathay swings to profit as transformation bears fruit
The Cathay Pacific Group posted an operating profit of HK$3.6b ($459m) in 2018, after two years of consecutive losses, as it saw the positive impact from its transformation programme. The result is a sharp improvement from the HK$1.45b loss logged in 2017. Revenue rose 14.2% to HK$111b, boosted by increases in the passenger, cargo and catering businesses. Expenses meanwhile grew 7.9% to HK$107b. Fuel was the most significant cost for the group as prices rose and it flew more, increasing by 31.1% before taking into account fuel hedging. Fuel hedging losses were reduced, however, leading to fuel costs rising 8.9% from 2017. Attributable net profit came in at HK$2.35b, reversing the HK$1.26b loss in 2017. Chairman John Slosar says that capacity in the passenger market resulted in intense competition during the year, especially with airlines from mainland China. This put pressure on yields on key routes, especially in the second half of the year. The passenger business however benefited from capacity growth, a focus on customer service and improved revenue management. This led to load factors keeping even and yield improving despite competitive pressures.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-03-14/oneworld/cathay-swings-to-profit-as-transformation-bears-fruit
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Cathay swings to profit as transformation bears fruit
The Cathay Pacific Group posted an operating profit of HK$3.6b ($459m) in 2018, after two years of consecutive losses, as it saw the positive impact from its transformation programme. The result is a sharp improvement from the HK$1.45b loss logged in 2017. Revenue rose 14.2% to HK$111b, boosted by increases in the passenger, cargo and catering businesses. Expenses meanwhile grew 7.9% to HK$107b. Fuel was the most significant cost for the group as prices rose and it flew more, increasing by 31.1% before taking into account fuel hedging. Fuel hedging losses were reduced, however, leading to fuel costs rising 8.9% from 2017. Attributable net profit came in at HK$2.35b, reversing the HK$1.26b loss in 2017. Chairman John Slosar says that capacity in the passenger market resulted in intense competition during the year, especially with airlines from mainland China. This put pressure on yields on key routes, especially in the second half of the year. The passenger business however benefited from capacity growth, a focus on customer service and improved revenue management. This led to load factors keeping even and yield improving despite competitive pressures.<br/>
