Cathay Pacific reports strong 1H2010 results, conditions to continue to improve in 2H2010

Cathay Pacific revenue up 33.7% - financial highlights for the six months ended 30-Jun-2010:

• Revenue: USD5,323 million, +33.7% year-on-year;
• Operating costs: USD4,684 million, +26.0%;
  • Fuel: USD1,696 million, +98.2%;
  • Labour: USD870.4 million, +11.3%;
• Operating profit: USD917.7 million, +248.8%;
• Net profit: USD880.8 million, +742.4%;
• Net assets: USD6,294 million, +15.3%;
• Passenger numbers: 13.0 million, +8.5%;
• Passenger load factor: 84.0%, +5.5 ppts;
• Passenger yield: USD 7.52 cents, +17.5%;
• Cargo volume: 872,000 tonnes, +24.4%;
• Cargo yield: USD 29.10 cents, +36.1%. [more]

*Based on the conversion rate at USD1 = HKD7.7658

Cathay Pacific: "If present trends continue, we expect our financial results to continue to be strong in the second half of 2010. That said, conditions can change rapidly in the airline industry. Our results would be adversely affected, and very quickly so, by a significant further increase in fuel prices or any return to the recessionary economic conditions of 2008 and much of 2009," Christopher Pratt, Chairman. Source: Cathay Pacific, 04-Aug-2010.

Cathay Pacific: "The Group's passenger business experienced a marked improvement from the lows of 2009 with revenues returning to almost pre-financial crisis levels. In economy class, load factors were generally high, as they were during much of the previous year, and yields increased. In the premium classes there was a sharp increase in demand for business travel originating in Hong Kong although this was not matched by a comparable increase in demand for travel originating in other major cities," Company statement. Source: Cathay Pacific, 04-Aug-2010.