Cathay Pacific posts 61% decline in net profits

Cathay Pacific Airways Ltd. posted a 61% decline in net profits due to rising fuel costs and lower demand for air cargo. The company said it expects demand for cargo services to further weaken in 2012. Cathay said its net profit for 2011 went down to HK$5.50 billion (US$708.3 million) from HK$14.05 billion (US$1.93 billion) in 2010. The sharp decline in net profit was also caused by a HK$3.03 billion (US$390.2 million) one-off gain, which boosted the 2010 figure. Without the one-off item, the carrier’s core net profit fell by 50.1% in 2011. Cathay chairman Christopher Pratt said that the outlook for 2012 will be more challenging than last year, considering the global economic slowdown, rising fuel prices and the continuing weakness in the air cargo market. “While these uncertainties continue, we expect pressure on economy class yields and our cargo business in particular to remain weak,” he said.
(March 14, 2012)