Cathay posts record earnings and profits for 2007
05 Mar 2008
Hong Kong: Hong Kong-based Cathay Pacific Airways beat industry forecasts with an 85 per cent jump in second-half profits for 2007, as well as a record-breaking 72 per cent jump in earnings to $900 million for the full year.
Cathay said that it carried record 17.8 million passengers in 2007, up 6.2 per cent from last year, and that passenger revenue was up 17 per cent, at $503.84 million. However, cargo revenue growth, which Cathay had targeted as an area of growth rose just 10 per cent to $169.23 million.
Cathay also reported $564 million in second-half profit, up 85 per cent from $307.69 million in the same period last year, which beat an average forecast of $429.48 million.
Full-year earnings were up 72 per cent to a record-breaking $900 million, which result beat an average forecast of $760.25 million.
Cathay said it was reporting record results for 2007 on the back of surging passenger demand and higher ticket prices. However, it has dimmed its outlook for 2008 as global credit scenarios begin to tighten. Like other global airlines it is faced with analyst predictions that the US credit crisis is likely to result in companies and consumers cutting on spending, which will affect global business and personal travel.
Last month, the International Air Transport Association (IATA) warned of turbulence in the airline industry with a slowdown in global air passenger traffic growth.
Cathay is Asia's third largest airline by market value after Air China and Singapore Airlines.
