- Passenger numbers: 2.8 million, +3.9%;
- Cargo volume: 83,200 tonnes, +5.1%;
- Aircraft movements: 22,500, +5.9%;
- Passenger numbers: 8.7million, +11.4%;
- Cargo volume: 213,600, +5.0%;
- Aircraft movements: 67,300, +9.2%.
Shenzhen Airport pax up 4%, cargo up 5% in Mar-2014; 8.7m pax in 1Q2014
You may also be interested in the following articles...
Cathay Pacific annual results: after a lost year, Cathay sees itself back on track - but to where?
Cathay Pacific's 2013 annual results show the carrier has emerged from its lost year, a period from mid-2012 to mid-2013 when it took sudden action to combat high fuel prices and aircraft maintenance by replacing 747-400s with 777-300ERs, making loss-making long-haul routes profitable almost overnight. During this time there was also large growth in short-haul sectors, which took time to mature. This was fuelled partially by strong regional demand as well as the strategic imperative to increase flights so as to maximise slots at its Hong Kong hub, thereby preventing competitors from using the precious few peak slots left. Any substantial peak hour slot increase is not likely to occur until a third runway is built, sometime after 2020.
The full year profit of HKD2.62 billion (USD338 million) shows a marked improvement over the HKD24 million (USD3 million) profit in 1H2013, when network adjustments were still under way. 2013's profit has been lauded, albeit an improvement from a low base: 2012's profit was only HKD862 million (USD111 million), representing a 0.9% margin. Cathay's 2013 margin of 2.6% is the third-lowest margin in recent times, even lower than 2003 during SARS, when the airline almost grounded its fleet.
This is not an encouraging growth platform, and the mood is considerably dampened by an increasingly competitive environment. Other airlines with stronger hubs are growing traffic, short-haul and long-haul, and this will only increase, further impacting Cathay – irrespective of a possible Jetstar Hong Kong launch. A new cargo terminal has arrived as Cathay concedes cargo is undergoing a structural, not cyclical, change. A CEO change from John Slosar to Ivan Chu occurs as Cathay seems to prefer to reminisce about the past rather than offer brave new strategies. Certainly other full service airlines are experiencing rocky times, but that is small comfort.
Air France-KLM: a new strategic plan awaits as 2Q marks another step on the recovery path
Air France-KLM's recovery continued with another year on year improvement in quarterly results in 2Q2014, mainly because it cut unit costs more quickly than the fall in unit revenues. Following its early Jul-2014 profit warning, it has made no further changes to its FY2014 EBITDA target, which remains EUR2.2-2.3 billion, and it continues to target net debt of EUR4.5 billion at the end of 2015 (versus EUR5.4 billion at the end of Jun-2014).
On the strategic front, Air France-KLM is accelerating the growth of its Transavia LCC subsidiary, although this unit is still loss-making, and is re-grouping its Air France point to point and Hop regional operations into a single business unit. In addition, it is examining further reductions to its full-freighter fleet, beyond those previously announced.
Air France-KLM is also working on its next five year strategic plan, to follow its Transform 2015 restructuring plan. To be unveiled in Sep-2014, the "Perform 2020" plan will focus on growth and competitiveness.