Lutfi From China, joined Sep 2000, 798 posts, RR: 0 Posted (10 years 2 months 3 weeks 6 days 17 hours ago) and read 1975 times:
Not bad, not bad. Despite high fuel costs.
Cathay Pacific announces 2004 Annual Results
Results 2004 2003 Change
Turnover HK$ million 39,065 29,578 +32.1%
Attributable profit HK$ million 4,417 1,303 +239.0%
Earnings per share HK cents 131.4 39.0 +236.9%
Dividend per share HK cents 65.0 48.0 +35.4%
Cathay Pacific Airways today reported its second best full-year results on record with an attributable profit of HK$4,417 million in 2004, compared to HK$1,303 million in 2003. Turnover increased by 32.1% from last year to a record HK$39,065 million.
Cathay Pacific carried a record 13,664,000 passengers and 972,416 tonnes of cargo as the airline increased both flights and capacity, further strengthening Hong Kong as a global aviation hub. The airline extended its Chinese Mainland network with the introduction of a daily service to Beijing and in early 2005 the launch of new passenger service to Xiamen and freighter service to Shanghai.
Improved world and Hong Kong economies were the main drivers for growth. 2004 would have been the airline’s best year on record had there not been a sharp rise in the price of fuel. Fuel accounted for 23.9% of the airline’s total operating cost, up from 19.8% in 2003.
Demand from both business and leisure travellers remained strong throughout the year. Passenger capacity increased by 24.9% over 2003. This increase, combined with higher load factors and yields, which rose 5.8% to HK45.8 cents for every passenger kilometre, contributed to a passenger revenue record of HK$26,407 million.
The airline set a new cargo revenue record of HK$10,549 million, which resulted from the continued growth in demand from Europe, Japan and the United States for goods manufactured in Mainland China. Cargo yield decreased slightly by 1.1% to HK1.76 cents. Access to the Mainland cargo market was further strengthened with the launch in January 2005 of a daily freighter service to Shanghai.
Cathay Pacific’s acquisition of a 10% stake in Air China at its initial public offering established a strategic partnership with the Mainland flag carrier and a platform for co-operation on a number of commercial and operational fronts, including strengthening network connections between Hong Kong and Beijing.
Cathay Pacific Chairman David Turnbull said: "Persistently high fuel prices along with greater regional and long haul competition will place further pressure on us to improve productivity and reduce unit costs. The aviation business often sees sharp ups and downs, yet we remain focused on maintaining profitable growth and are optimistic over our future. We are expanding our network and fleet and will continue to deliver superior service and value to our customers."
CCA From Hong Kong, joined Oct 2002, 877 posts, RR: 14
Reply 4, posted (10 years 2 months 3 weeks 5 days 21 hours ago) and read 1723 times:
"To cater for the record growth, Cathay is evaluating new aircraft and is understood to favor the 747ADV and 777-300ER. An order for both types is expected shortly. It has a fleet strength of 89 widebodies with another 15 on order through 2007"
CX flyboy From Hong Kong, joined Dec 1999, 6694 posts, RR: 55
Reply 7, posted (10 years 2 months 3 weeks 5 days 13 hours ago) and read 1577 times:
Expansion was never restricted because of cash-flow, so this profit announcement does not open the door to more expansion. We need pilots, but cannot train them. Money cannot fix that. Before the announcement was made regarding 2nd hand 744s, some might remember the number 15 floating around, but in the end we have purchased 8. Cx wanted 15, but simply cannot crew them, hence the lower number in the end. If crew numbers can be increased beyond the projected growth, then expect to see expansion in the short term beyond what is already planned, otherwise just expect more orders for modest growth or for replacement aircraft like the 773ER or the 744Adv. The main thing CX are hoping for is the agreement to raise retirement age to 60, which will effectively give them a whole bunch of additional crew for the expansion they want.
Lutfi From China, joined Sep 2000, 798 posts, RR: 0
Reply 8, posted (10 years 2 months 3 weeks 5 days 11 hours ago) and read 1545 times:
Just to add to that. What CXflyboy means is that they cannot train them to CX standards quicker, and won't reduce the standards. For various reasons, CX prefers to bring in crew at the bottom and train them the CX way, rather than speed things up and bring in direct entry captains (like EK) but this means a natural limit to growth - the rate at which you can train/ upgrade crew.
Iowa744fan From United States of America, joined Apr 2004, 931 posts, RR: 1
Reply 10, posted (10 years 2 months 3 weeks 5 days 8 hours ago) and read 1450 times:
This is definitely great news for Cathay...not to mention shareholders like me!
Do you think that the article is fairly accurate about the decision being for the 773ER and the 744ADV? Is CX going to dispose of their 3 346s then? I guess that they are all leased, but I have heard mixed reports stating that they would return them at the end of their leases and also reports that they were going to keep them longer. Also, would the 773ER be the first GE powered jetliner operated by Cathay (besides on short-term leases)? I am not sure what engines the old 990s and 707s used. I'll be interested to see what happens.
I agree with you about more 773s (well, 773ERs) and quite likely 333s, but I am not sure what you mean by the 346s. If they are getting 773ERs, I doubt that they would hold onto their fleet of 346s (then again, I have been wrong), plus SQ doesn't operate any 346s. Also, you think that they would go for more used SQ 744s instead of new 744ADVs? Sorry, I am not criticizing, I was just curious about your thoughts.