Anotherday,
You can see the yields yourself on the intracx homepage. Nothing much has changed.
"Share price is down at $12 because of all this and other factors including our contract compliance."
From their own financial briefings the yield reduction was based upon 3 factors, Lower fuel surcharge, Overcapacity in a weak market, Unfavorable foreign currency movements. The company actually expanded capacity on the passenger side by 5.9% and on the cargo side by 5.4%, however costs only increased 2.3%.
The gross fuel cost was $24,494, the hedging loss was $8,474 million, net fuel cost $32,968 million. So as you can see CX paid 35% more for their fuel due to the hedging loss while at the same time fuel surcharges decreased. That has significant pressure on yields as fuel is around 60% of the total cost of a long haul flight.
In terms of foreign currency, the yields were hit by a 16.10% reduction in the CAD, 10.96% in the AUD, 10.26% in the EUR, 5.45% in the GBP, and 4.4% in the RMB, 4.23% in the INR, 3.73% in the TWD, and 0.4% in the JPY. That represents 41% of the revenue mix was hit by a unfavorable currency movements.
The plus side is the reduction in the EUR will make some of the A350 costs lower going forward. On the minus side the devaluation in the RMB decreased the value of the 20.13% interest in Air China.
The group profit margin over the last 12 years on average was 5.5%, last year was an above average year at 5.9%.
CX hasn't issued a profit warning.