Cathay Pacific Airways has reported a first-half loss of HK$935 million ($121 million) caused by a 10% fall in freight volumes due to poor demand on European and North American routes. Overall sales were up however by 4.4% to HK$48.9 billion.
Cargo revenue fell 7.6% to HK$11.9 billion, with just 64.3% of freight space filled during the period – a 4.1% drop over last year’s results.
The airline also incurred a HK$247 million loss from scrapping an aircraft as it replaces its 747-400 aircraft. The airline is currently selling four 747-400 passenger planes converted into freighters to Air China Cargo. Two more have been parked.
Fuel costs, excluding hedging, rose 6.5% during the period due to increased consumption and higher prices. Realized fuel-hedging gains fell 59%.
Passenger yields rose 1.2%, with a load factor of 80.1%.
Cathay Pacific falls heavily (unfortunately) completing the correct predictions from the May/June issue of Airline Economics – That “Investing in Airlines” issue is now confirmed to have been totally accurate before any other commentators.
