Cathay Pacific: Better performance with a lower profit in first half 2015

Cathay Pacific reported a HK$ 1,972 million profit in the first year of 2015, with a 0.9 per cent deduction in revenue compared to the same period last year.

“The Group’s performance in the first six months of 2015 was considerably better than in the same period in 2014,” said Mr John Slosar, the chairman of Cathay Pacific.

Lower fuel prices contributed to a higher economy class passenger business demand to the group’ airlines, subsidiary and associated companies, according to the Cathay Pacific’s 2015 interim results.

Passenger capacity in the first six months of 2015 raised 6.4 per cent compared to 2014’s same time, reflecting the company’s new routes to Boston and Zurich, according to the report.

Thailand’s traveling trend recovered since its political situation improved from the year before, drove to a strong increase in Southeast Asia’ passenger services for 13.9 per cent.

Depreciation in several currencies including the Japan yen, the euro and the Australian dollars led to a bigger demand for the airlines between Hong Kong and the relative countries, said in the report.Cathay_Pacific_Boeing_777-200_B-HNL_HKG

Routes related to India, Middle East Pakistan and Sri Lanka was the only decrease regarding passenger services due to the outbreak of middle East respiratory syndrome.

The cargo services capacity increased 8.9 per cent from 2014’s $HK 7,318 million to $HK7,971 million, with a decrease of revenue for 2.5 per cent.

Fuel hedging losses causes the cargo yield for Cathay Pacific and Dragonair declined for 11.1 per cent compared to 2014’s first half year.

Due to the booming e-commerce, “mail shipment originating Mainland China to North America were strong”, said the report.

Cathay Pacific declared a first interim dividend of HK$0.26% per share for the six months ended on 30th June 2015.

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