CCA
7th Aug 2002, 11:56
Dow Jones Business News
HONG KONG -- Cathay Pacific Airways reported that its net profit jumped 7.1% in the first half, as the carrier's cost-cutting helped it weather the global economic slowdown and the effects on air travel after the Sept. 11 terrorist attacks on the U.S.
The net profit figure was sharply higher than expected. A Dow Jones Newswires poll of seven analysts suggested Cathay Pacific would report a 43% decline in net profit to HK$752.8 million. Forecasts ranged from ING Baring's HK$462 million to JP Morgan's HK$1.22 billion.
First-half revenue slipped to HK$15.51 billion Hong Kong dollars, compared with HK$15.84 billion.
Operating expenses slid more than 7% to HK$13.68 billion from HK$14.80 billion largely as a result of falling fuel costs and route expenses, it said.
The improved earnings were helped by lower fuel costs and rising passenger traffic, although a trend among passengers to fly economy rather than business class was hurting, the airline said.
"The result reflected a steady recovery in market conditions," Cathay said. " With more people traveling, the airline brought previously grounded aircraft back into service and restored services that were temporarily suspended following the terrorist attacks in the United States."
Hong Kong's flagship airline carrier said the outlook for the second half of the year was better than previously thought.
Meanwhile, Cathay's pilots union, the Hong Kong Aircrew Officers Association, met Wednesday to confirm the re-election of its president, Nigel Demery.
Cathay and its 1,300 unionized pilots have been feuding for more than a year over pay and scheduling practices. At the mostly administrative meeting held Wednesday, Mr. Demery said the pilots union did not discuss whether it would resume industrial action against the airline.
The pilots halted a four-month work-to-rule campaign in October without any concessions from management. Mr. Demery said the union could consider resuming labor action at their next meeting, planned for October.
"The pilots have not given up," Mr. Demery said. He said the pilots were trying to "just get [airline officials] to sit down and talk."
- This report was compiled from the Associated Press and Dow Jones Newswires.
HONG KONG -- Cathay Pacific Airways reported that its net profit jumped 7.1% in the first half, as the carrier's cost-cutting helped it weather the global economic slowdown and the effects on air travel after the Sept. 11 terrorist attacks on the U.S.
The net profit figure was sharply higher than expected. A Dow Jones Newswires poll of seven analysts suggested Cathay Pacific would report a 43% decline in net profit to HK$752.8 million. Forecasts ranged from ING Baring's HK$462 million to JP Morgan's HK$1.22 billion.
First-half revenue slipped to HK$15.51 billion Hong Kong dollars, compared with HK$15.84 billion.
Operating expenses slid more than 7% to HK$13.68 billion from HK$14.80 billion largely as a result of falling fuel costs and route expenses, it said.
The improved earnings were helped by lower fuel costs and rising passenger traffic, although a trend among passengers to fly economy rather than business class was hurting, the airline said.
"The result reflected a steady recovery in market conditions," Cathay said. " With more people traveling, the airline brought previously grounded aircraft back into service and restored services that were temporarily suspended following the terrorist attacks in the United States."
Hong Kong's flagship airline carrier said the outlook for the second half of the year was better than previously thought.
Meanwhile, Cathay's pilots union, the Hong Kong Aircrew Officers Association, met Wednesday to confirm the re-election of its president, Nigel Demery.
Cathay and its 1,300 unionized pilots have been feuding for more than a year over pay and scheduling practices. At the mostly administrative meeting held Wednesday, Mr. Demery said the pilots union did not discuss whether it would resume industrial action against the airline.
The pilots halted a four-month work-to-rule campaign in October without any concessions from management. Mr. Demery said the union could consider resuming labor action at their next meeting, planned for October.
"The pilots have not given up," Mr. Demery said. He said the pilots were trying to "just get [airline officials] to sit down and talk."
- This report was compiled from the Associated Press and Dow Jones Newswires.