Cathay Pacific reports HK$24 mln profit in H1

The Cathay Pacific Group Wednesday reported a profit of 24 million HK dollars (about 3.1 million U.S. dollars) for the first six months of 2013 mainly due to cost reduction and stronger passenger service.

This profit compares to a loss of 929 million HK dollars (about 119.7 million U.S. dollars) in the first half of last year.

Group Chairman Christopher Pratt said the improvement is "pleasing." In the first half of 2013, the Group's net fuel costs decreased by 8.5 percent compared to the same period in 2012 by changing schedules, reducing capacity and withdrawing older, less fuel-efficient aircraft from service.

Notwithstanding this reduction, fuel remains the group's most significant cost, accounting for 38.8 percent of total operating costs during the period. The persistently high price of jet fuel continued to have an adverse effect on business.

The passenger business improved with revenue increasing by 0.8 percent, although capacity decreased by 4.8 percent.

The group said they continued to operate in a challenging business environment in the first half of 2013, though there was improvement in its passenger business.

The airlines' cargo business has been affected by weak demand since April 2011. The Group's cargo revenue for the first half of 2013 was down by 5.2 percent.

The group continued to modernize its fleet, taking delivery of six new aircraft - two Airbus A330-300 aircraft, three Boeing 777- 300ER aircraft and one Boeing 747-8F freighter.

"The business outlook for the rest of 2013 remains unclear, but our core strengths a superb team, a strong international network, exceptional standards of customer service, a strong relationship with Air China and our position in Hong Kong remain firmly in place." Pratt said.

Founded in 1946, Cathay Pacific is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport. The airline's operations include scheduled passenger and cargo services.