Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Stock Exchange of Hong Kong  >  Cathay Pacific Airways Limited    0293   HK0293001514


News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Cathay Pacific 2013 Net Profit Jumps on Higher Air Travel Demand

share with twitter share with LinkedIn share with facebook
share via e-mail
03/12/2014 | 12:51am EST
By Joanne Chiu 

HONG KONG--Hong Kong-based carrier Cathay Pacific Airways Ltd. has posted a sharp rise in 2013 earnings on the back of strong long-haul international air travel, and it flagged an upbeat outlook for the year.

The airline said that its passenger business continues to perform well and it will benefit from the expansion of frequencies on long-haul routes.

"Business outlook for 2014 looks to be improved when compared to 2013," Chairman Christopher Pratt said in a statement on Wednesday, though he warned that fuel prices will likely remain high.

Net profit for the 12 months ended Dec. 31 was 2.62 billion Hong Kong dollars (US$337.0 million), tripling from HK$862 million a year earlier on higher air travel demand and lower fuel expenses, it said. The result was in line with the average HK$2.74 billion net profit forecast of six analysts in a Wall Street Journal poll.

Unlike its key Asian rivals such as Singapore Airlines Ltd. and Qantas Airways Ltd., Cathay Pacific's strength in long-haul flights has helped it fend off rising pressure on yields in the medium and short-haul market within Asia, where a proliferation of low-cost carriers is hitting fares for short-haul economy class seats.

Cathay Pacific has said it faces pricing pressures in its premium cabins and continued air cargo weakness, but demand for first- and business-class flights has recovered from the fourth quarter of 2013 as the U.S. economy gradually recovers and European economies stabilize.

In response to higher passenger demand across its long-haul global network, Cathay Pacific has announced plans to reinstate and add new routes and frequencies to certain North American and European gateways.

Demand on long-haul routes held up well in January, the carrier said, with revenue passenger kilometers--a measure of the volume of passengers carried--rising 16.3% for flights to North America, much higher than the 9.8% average growth rate for the same period.

Cathay Pacific's solid earnings on a recovery in travel demand may signal a positive start to the year for other Asian carriers, whose earnings have been hit by intensifying competition from Middle Eastern carriers and high fuel prices. Singapore Airlines in February posted a sharp decline in October-to-December net profit as pressure to discount ticket prices hurt yields. Qantas Airways in the same month swung to a net loss of 235 million Australian dollars (US$211 million) for the first half of its fiscal year, which ran through December.

Fuel costs, which accounted for 39% of 2013 operating costs, fell 5.8% to HK$38.13 billion as oil prices fell, Cathay Pacific said.

Full-year revenue rose 1% to HK$100.48 billion from HK$99.38 billion, said the carrier, which also owns China-focused Hong Kong Dragon Airlines Ltd.

The airline's share of profit from non-airline units and affiliates was down by 31% to HK$781 million, largely because of lower contributions from 20.13%-owned Air China Ltd., as well as losses of its new cargo terminal in Hong Kong and its cargo joint venture with the Chinese flag carrier.

The firm recommended a final dividend of 16 Hong Kong cents, compared with a final dividend of 8 Hong Kong cents in the previous year.

Write to Joanne Chiu at joanne.chiu@wsj.com

Access Investor Kit for Qantas Airways Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=AU000000QAN2

Access Investor Kit for Cathay Pacific Airways Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=HK0293001514

Access Investor Kit for Singapore Airlines Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=SG1V61937297

Access Investor Kit for Cathay Pacific Airways Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=US1489063081

Access Investor Kit for Singapore Airlines Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=US82930C1062

Stocks mentioned in the article
ChangeLast1st jan.
CATHAY PACIFIC AIRWAYS LIMITED -0.58% 10.32 End-of-day quote.-7.03%
QANTAS AIRWAYS LIMITED 0.70% 7.16 End-of-day quote.22.80%
SINGAPORE AIRLINES LIMITED -0.22% 9.02 End-of-day quote.-4.35%
share with twitter share with LinkedIn share with facebook
share via e-mail
12/04Hong Kong Airlines says it has drawn up plans for cash infusion in fight to k..
12/02CATHAY PACIFIC AIRWAYS : Terms of Reference of the Audit Committee
12/02Germany's Lufthansa says not open to Qatar investment
11/29HANG SENG : Cathay Pacific cuts 2020 capacity plan as Hong Kong unrest continues
11/28CATHAY PACIFIC AIRWAYS : Hong Kong to allow airlines to keep airport slots despi..
11/25Asian airlines cautious about outlook for 2020 - AAPA
11/18Asian airlines slash flights to Hong Kong as unrest escalates
11/18Asian airlines slash flights to Hong Kong as unrest escalates
11/18Airlines Turn Away From the Biggest Jets -- WSJ
11/14Hong Kong's Cathay defers delivery of 4 Airbus planes as demand falls
More news
Financials (HKD)
Sales 2019 106 B
EBIT 2019 4 174 M
Net income 2019 2 000 M
Debt 2019 68 837 M
Yield 2019 2,09%
P/E ratio 2019 20,3x
P/E ratio 2020 11,9x
EV / Sales2019 1,03x
EV / Sales2020 1,00x
Capitalization 40 597 M
Duration : Period :
Cathay Pacific Airways Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CATHAY PACIFIC AIRWAYS LIM
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 12,02  HKD
Last Close Price 10,32  HKD
Spread / Highest target 69,6%
Spread / Average Target 16,5%
Spread / Lowest Target -41,9%
EPS Revisions
Kin Wing Tang Chief Executive Officer & Executive Director
Patrick Healy Chairman
Gregory Thomas Forrest Hughes COO, Director & Chief Service Delivery Officer
Martin James Murray Chief Financial Officer & Executive Director
Kwok Leung Chu Non-Executive Director
Sector and Competitors