Cathay Pacific Group reports sharp profit declines in 1H2016, expects challenges to continue in 2H

Cathay Pacific Group revenue down 9% - financial highlights for six months ended 30-Jun-2016:

• Total revenue: HKD45,683 million (USD5881 million), -9.3% year-on-year;
• • Passenger: HKD33,413 million (USD4302 million), -7.8%;
  • Cargo: HKD9415 million (USD1212 million), -17.2%;
• Operating costs: HKD45,019 million (5796 million), -6.3%;
• • Fuel: HKD13,259 million (USD1707 million), -20.2%;
  • Labour: HKD9867 million (USD1270 million), +5.3%;
• Operating profit: HKD664 million (USD85.5 million), -71.9%;
• Net profit: HKD503 million (64.8 million), -76.4%;
• Passenger numbers: 17.2 million, +2.7%;
• Passenger load factor: 84.5%, -1.4 ppt;
• Passenger yield: HKD 54.3 cents (USD 7.0 cents), -10.1%;
• Cargo volume: 866,000 tonnes, -0.2%;
• Cargo yield: HKD1.59 (USD 20.5 cents), -17.6%;
• Total assets: HKD170,843 million (USD21,995 million);
• Liquid funds: HKD21,096 million (USD2716 million);
• Total liabilities: HKD120,021 million (USD15,452 million). [more - original PR]

*Based on the average conversion rate at HKD1 = USD0.128743

Cathay Pacific Group: "We expect the operating environment in the second half of the year to continue to be impacted by the same adverse factors as in the first half. The overall business outlook therefore remains challenging. We expect passenger yield to remain under pressure. Overcapacity and economic fragility will dampen cargo demand. Fuel prices have increased this year, but are still lower than in previous periods. The benefits from lower fuel prices will continue to be partially offset by losses on our fuel hedging contracts. The fuel surcharge remains suspended. In this difficult environment, we will manage capacity and strive to make further improvements in operational efficiency. We will also continue to be vigilant on costs," John Slosar, Chairman. Source: Company statement, 17-Aug-2016.