CX issues trading statement on current business situation
Posted On: 10 May 2010
Cathay Pacific issued a trading statement to the Hong Kong Stock Exchange on Monday (10 May) saying that its trading position has improved since the 2009 annual results announcement in March.
In commenting on prospects in the annual results announcement for 2009, Chairman Chris Pratt said: While we welcomed the improvement in business in the latter part of 2009, we remain cautious about the prospects for 2010. Revenues and yields remain below levels experienced prior to the recent downturn and there has not yet been a sustained improvement in premium passenger demand which accounts for a high proportion of total revenues.
"There are concerns that the adverse changes which we have seen in the pattern of passenger and freight demand could be structural rather than cyclical. In addition, the cost of fuel, which rose steadily from the middle of 2009, remains stubbornly high and threatens to undermine profitability.
In its statement to the HKSE, CX said that since the above remarks were made the trading position has been strong, particularly on the cargo side.
"The improved cargo and premium passenger revenues which became apparent in the last quarter of 2009 have continued into this year. This means that, despite higher fuel prices, we expect strong financial results for the first half of 2010 and, if present trends continue, for the second half also," the statement said.
"That said, conditions can change very rapidly in the airline industry. Our results would be adversely affected, and very quickly so, by a significant increase in fuel prices or any return to the recessionary economic conditions of 2008 and much of 2009."
CCD
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