Profit & Loss

[crewsunite]

Can someone with some know pls expand on Note F & H.
30 % increase is quite a lot!

[Freehills]

From the stock exchange release

Aircraft maintenance
(881)
- Increased mainly due to an increase in operations as well as additional shop visits.

Others
(675)
- Increased mainly due to an increase of HK$182 million in inflight service and passenger expenses.

[Air Profit]

Let's put this result in perspective. Last year they earned approximately 5 Billion (yes...with a B!). So, knock off a billion for the first six months. Effectively, last year they earned 4 Billion (yes...with a B!) and they break even for the first 6 months of this year. My heart bleeds.....

[Waterskier]

Convenient how the biggest cost increase was maintenance (24% or HKD 882 million). This happens right after Cathay sells their shares in HAECO to Swire Pacific. I bet Swire is delighted HAECO had a wonderful first half with a HKD 310 million profit.

On the other hand, fuel costs increased 6% (of which 2% was due to additional consumption) yet that's all they complain about.

[KABOY]

We all know how much Air China want that Cathay Pacific Crown.

Swire will gleefully hand it over, minus all the jewels. The only reasonable return on investment is leasing, maintenance, catering, frequent flyer programs and ground handling.

Anybody guess what will be sold next?

[quadspeed]

Swire will gleefully hand it over

in fact, they would never risk their unparalleled access to Mainland China by withholding a request to merge or surrender Cathay Pacific to China National Aviation Corporation.

[DUSKY DOG]

For the past 50 years CX managers and directors have never lost anything only staff.Bring on the revolution:suspect:

[MrClaus]

Cathay Catering is the next piece of the puzzle. It is about to expand its nonaviation operations to north of the border and it will then be spun off to Swire.

[ProPwannabe]

Cathay loss of 900 odd millions on the first half of this year, does that include the brand new a350-1000 they put on firm orders this year?

[SloppyJoe]

Gleam of hope for Cathay Pacific in stormy skies | Aspire Aviation (http://www.aspireaviation.com/2012/08/13/gleam-of-hope-for-cathay-pacific-in-stormy-skies/)

Good link that was posted in AOA forum.

For instance, aircraft maintenance expense increased by HK$881 million, or 23.5% from HK$3.76 billion recorded a year earlier to HK$4.64 billion owing to increased shop visits by Rolls-Royce RB211 engines powering the gas-guzzling Boeing 747-400 fleet which are “hugely expensive”, according to Cathay Pacific chief executive John Slosar at a press conference presenting the 6-month results, as well as the maintenance expense incurred before selling 747-400BCF (Boeing Converted Freighter) freighters to Air China Cargo (ACC).
Moreover, Cathay Pacific took a special charge, or write-down, of HK$247 million due to scrapping 1 Boeing 747-400BCF (Boeing Converted Freighter) during the 6-month period. Also weighing on the bottom line was a HK$416 million increase in aircraft depreciation to HK$4.4 billion from HK$4.1 billion due to faster aircraft retirements of the Boeing 747-400s and Airbus A340-300s.
“There was a HK$247 million write-off on one BCF, which is included in ‘others’ in the P&L account. The depreciation expense was HK$4.4 billion. The HK$416 million referred to is the reconciliation on page 15 from the 2011 operating profit to this year and merely reflects the increase. The additional depreciation includes the accelerated depreciation on the B747s that are being retired early. The 747 and 340s are included in the depreciation charge for the year,” Cathay Pacific finance director Martin Murray said in a reply to Aspire Aviation.

[crwjerk]

"Kids day out at CX City"
What was the purpose of this? Did this not cost 000's of $$$$???? Is this why we're crying poor again? For this, and other wastes of money?

[geh065]

Cant help notice thise big cars in the Car park esp at KA.

As far as I know, the fleet of Audis is owned by Swire and do not come under the CX umbrella.

[N1 Vibes]

WRT to the shop-visits on the RB211s and fuel-burn:

CX did not SV about 20 engines during the recession and flew them on beyond where they would normally be removed for rework.

Resulting in:

a) "hugely expensive" SV's today
b) inefficient engines on wing - guzzling gas


Will CX ever learn - stripping paint from freighters to save money? :\

Safe Flying!

N1 Vibes