Cathay Pacific cautious on 2010 outlook, but in the midst of a solid turnaround

Cathay Pacific staged a very solid turnaround in 2H2009 (six months to 31-Dec-2009), comfortably exceeding the market's profit expectations, helped by better yields and capacity restraint. But the Hong Kong-based carrier remains "cautious" about the prospects for 2010, following the big hits to its premium travel and cargo businesses over the past two years. Chairman Christopher Pratt stated, "while we welcomed the improvement in business in the latter part of 2009…revenues and yields remain below levels experienced prior to the recent downturn". He added, "there has not yet been a sustained improvement in the premium passenger demand, which accounts for a significant part of our revenue. That said, we have many things working in our favour which will help to put us in a stronger position if the current recovery in the world economy is sustained".