Originally Posted by
cxhk
A HK$1.9 billion profit = a profit margin of 1.6%
That is such a small profit in any measure, especially for an airline the size of CX that is generating the level of revenue, of HK$106billion a year, CX should make at least 10x times the amount of profit to be even consider profitable.
Overall a reasonable summary, but one must remember that the reported profit is after Swire have applied their transfer pricing to move money out of whichever companies have higher taxes, greater profit sharing schemes or share holder dividend expectation etc. The reported profit is not a good indicator of the financial health of CX, or any other company in the group.