Cathay Pacific H1 results worse than expected

admin
By admin August 13, 2014 19:32

Cathay Pacific H1 results worse than expected

Cathay Pacific has reported its H1 profit as lagging behind estimates, citing competition with Middle East carriers and mounting losses from affiliates.

The airline reported net income as increasing fourteen-fold to HK$347 million (US$45 million) in the six months ended in June, compared with the HK$462 million estimated in a media survey of eight analysts. Cathay forecasts business “to be better” during the second half of the year.

Cathay also reported that passenger yields fell 3.5% to HK$0.66. Cathay and its Hong Kong Dragon Airlines Ltd. subsidiary carried 15.4 million passengers in the first half of the year, 6.5% more than a year earlier, helped by growing demand to destinations in Northeast Asia and North America. Load factors increased 2.3% to 83.6%.

Cathay Pacific Chairman John Slosar said: “The operating environment for the Cathay Pacific Group and the aviation industry as a whole remains challenging. This makes it difficult to maintain yields. We expect business to be better in the second half of 2014.”

Cathay also stated that as of June 30th, it has 90 aircraft on order for delivery by 2024 at list prices of HK$210bn. The order is part of the airline’s intention to expand its long-haul services.

admin
By admin August 13, 2014 19:32