Cathay’s profits soar despite weak air cargo

CATHAY PACIFIC’S profits in 2013 climbed by nearly 204 per cent to US$335m last year – however its cargo business remained weak, a statement reveals.
Turnover for the year increased by 1.1 per cent.
The Asian carrier attributed its healthy figures to the strengthening of its passenger business and measures taken to reduce fuel costs, such as changing schedules, reducing capacity, withdrawing older aircraft from service and taking delivery of new, more fuel-efficient aircraft.
Its cargo business continued to be affected by strong competition, weak demand, as well as the high price of jet fuel.
But there were signs of some recovery in cargo in the last quarter of 2013, a statement says.
Cargo revenue declined by 3.6 per cent in comparison with 2013.
Yield for Cathay Pacific and sister company Dragonair decreased by 4.1 per cent, while capacity increased by 1.7 per cent but the load factor fell by 2.4 percentage points to 61.8.
“Capacity was adjusted in line with demand throughout 2013 and more cargo was carried in the bellies of passenger aircraft in order to reduce costs,” says the statement.
“The airline’s new cargo terminal at Hong Kong International Airport, which became fully operational in October 2013, will allow us to improve efficiency and reduce costs in the long-term,” it adds.