Cathay Pacific Airways reported a net loss of HK$935 million ((US$120.6 million) for the first six months of 2012, down 133.3 percent from a profit of HK$2.8 billion year-on-year, as high jet fuel prices, disappointing passenger yields, and weak cargo demand affected the aviation industry as a whole.
Continued weak demand in major markets sliced cargo revenue for the first half of 2012 by 7.6 percent to HK$11.9 billion, Hong Kong’s biggest airline said in a press statement. Capacity was down by 4.3 percent, while load factor dipped by 4.1 percentage points to 64.3 percent.
The group’s two key cargo markets, Hong Kong and China, performed well below expectations.
Group turnover for the period rose by 4.4 percent to HK$48.8 billion.
Fuel remained the airline’s most significant cost, with prices reaching a historical high during the first half of 2012 and eating into Cathay Pacific’s operating results.
The company is addressing the fuel problem by modernizing its fleet, and has been ordering newer, more efficient aircraft to replace its older, fuel-hungry jets.
“Aviation will always be a volatile and challenging industry and our business will always be subject to factors, including economic fluctuations and fuel prices, which are beyond our control,” said Christopher Pratt, Cathay Pacific chairman.
He added: “We will continue to take whatever measures are necessary to protect the business, managing short-term difficulties while remaining committed to our long-term strategy.”
Photo: Jeremy Burgin
